UK construction activity fell at its slowest rate for almost two years last month, according to the Chartered Institute of Purchasing and Supply
The CIPS/Markit construction purchasing managers鈥� index stood at 48.6 during January, up from 47.1 in the previous month, signalling the smallest fall in activity during the 23-month period of contraction.
The survey monitors three areas of construction activity: housebuilding, commercial and civils. Housebuilding was the only one of the three to grow in January, albeit by a slower pace than in December. The rates of decline eased in the other two sectors.
David Noble, chief executive officer at the CIPS, said: 鈥淐onstruction continues to be the worst performing sector of the UK economy 鈥� it is struggling in the face of credit supply shortages and overall economic uncertainty.鈥�
He added that, although the rate of decline slowed, competition is still intense. 鈥淥perating conditions are tough and firms are now measuring performance from such a low base level that there鈥檚 a general consensus that things can鈥檛 get much worse. Particularly disappointing is the slowdown in housebuilding, as this has been one of the few bright spots.鈥�
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