Figures show activity continues to decline but rate is weakest for over a year
The recession in the construction industry eased in May, according to data from the Chartered Institute of Purchasing and Supply.
An overall index figure of 45.9 showed a fall in activity since April but the rate of decline was the weakest in over a year.
The index uses 50 as a base and any figure lower represents a contraction in activity while a figure of 50-plus denotes month-on-month growth.
Roy Ayliffe, director at CIPS, said: 鈥淎fter appearing to be in freefall in February, we are starting to see the construction economy show some signs of life and steer itself back onto the road of recovery.鈥�
But he added: 鈥淭his data suggests that, while the construction sector may be out of the intensive care unit, it's still some way from making a full return to health and there is always danger of a relapse.鈥�
The housebuilding sector produced the most encouraging numbers, with an index figure of 48.9.
Paul Smith, senior economist at Markit, said: 鈥淭his augers well for improvements in housebuilding and house price data going forward.鈥�
Confidence among purchasing managers at construction firms jumped to a 21-month high of 72.6. Smith added: 鈥淭he underlying trends in the key demand and activity indices are now clearly upward and consistent with much a much slower rate of industry contraction.鈥�
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