Construction starts moving in March

March's CIPS/Markit Purchasing Managers’ Index® (PMI®) for construction has increased for the first time since February 2008.

The report showed growth as purchasing managers comment on growth in new orders and construction companies staying positive about the future. House-building showed the strongest activity in the subsectors.

David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said:

“Though it’s great to see the UK construction sector turn the corner after two years of relentless contraction, it’s still very early days. The recession hit construction the hardest and because the industry is operating from such a low base, this upturn may be short-lived.

“Purchasing managers noted an emerging public/private sector divide as the General Election looms closer. While overall industry improvement was bolstered by private sector expenditure - especially in the housing and commercial sectors - it’s worrying to see civil engineering contracting, given that mooted public sector spending cuts are yet to kick in.

“Dwindling head counts, as firms laid off staff at a quicker pace, coupled with weakened confidence about future business performance, suggests that the construction industry still has some concerns over the stability of the recovery.”