Construction sector remains optimistic

Date: Tuesday 02 Mar 2010

Activity in the UK construction sector was lower than anticipated in February, according to figures released by the Chartered Institute of Purchasing & Supply and Markit Economics.

The Purchasing Managers Index for the construction sector in February came in below expectations of 48.9 at 48.5 (seasonally adjusted), and was also down from January’s figure of 48.6.

A reading below 50 indicates a contraction.

‘Though this was a relatively modest rate of contraction, tough operating conditions, dire weather and funding constraints dampened overall sector activity,’ claimed David Noble, chief executive officer of the Chartered Institute of Purchasing & Supply.

Sarah Ledger, an economist at Markit, said that ‘construction companies remained optimistic over future activity for the next 12 months,’ but added that ‘potential cuts in public spending could negatively impact sector performance, suggesting that fragility will be a key theme over the coming months.’

Of the three main UK construction sub-sectors, only house building showed a rise in activity while civil engineering based work and commercial construction activity tailed off.

« Go back to news channel

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE