News from construction sector analysts paints a rosy picture for the year.
Growth in the construction industry picked up again last month, taking it to its highest levels since last July. This is the optimistic news from the Chartered Institute of Purchasing and Supply.

Its index of activity rose to 55.4 in February, up from 54 in January. The index has now been above the 50 mark, which separates expansion from contraction, for 37 months. The Institute's index of expectations of future business activity rose to 77·5, its highest level since March 2001.

Activity rises are centred around the house building market. According to the Department of Trade and Industry, public housing and housing association orders in the year to January 2002 rose by 18% when compared to the previous year.

Private housing orders climbed too, but at a less prolific rate. In the 12 months to January 2002 they rose by 2% compared with the previous 12 months. Public non-housing orders also rose in the 12 months to January 2002: up 8% when compared with the previous 12 months. Private commercial orders were down 1% year-on-year, private industrial down 2% and infrastructure orders down 8%.