At last, the construction industry seems to be showing signs of growth as business activity picks up for the first time in two years.
The CIPS/Markit Construction Purchasing Managers’ Index, which measures construction activity, rose to 53.1 points in March, up from 48.5 in February. Any figure above 50 indicates growth.
While this positive development has not translated into an increase in construction jobs yet, industry experts hope that construction firms will begin employing again soon.
According to the Chartered Institute of Purchasing and Supply (CIPS), this expansion is largely the result of an increase in new orders from the private sector, as the commercial property and housebuilding industries flourish for the seventh month in a row.
However, David Noble, the chief executive of CIPS, has warned that the sector’s journey back to health could be a slow one, due to public sector spending cuts that could come into force after the general elections in May.
“The construction industry still has some concerns over the stability of the recovery,” he added.
Hopefully the new government will choose to stagger its spending cuts in a way that allows the construction industry to regain its footing.
