The study from the Purchasing Managers Index showed UK construction activity has now moved into growth for the first time since February 2008.
The seasonally adjusted CIPS/Markit Construction Purchasing Managers’ Index (PMI) recorded a score of 53.1, rising from the previous month’s reading of 48.5. According to the report, a rise in new orders had precipitated the sector's modest expansion last month.
Announcing the results, a spokesman for the PMI said: “Incoming new orders increased during March for the first time in four months, and only the second time since February 2008. Constructors attributed the rise in new business to the increased success of tenders."
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However, the report noted that despite some improvements opportunities to tender remained low when compared to pre-recession levels. The research also found that a further sharp decline in employment within the UK construction sector during March highlighted some "fragility".
"Job cuts were largely attributed to redundancy programmes, with staffing levels showing no signs of stabilisation despite the rises in activity and new orders.”
Of the three broad UK construction subsectors examined, house-building showed the strongest rise in activity. In addition to residential construction, commercial-based activity also increased during March, with growth reported for the first time since February 2008.
However, the civil engineering sub-sector, where activity is typically driven by public spending, remained in decline during March. Moreover, the pace of contraction was 'marked'.
(DW/BMcc)
