Index records 24th consective month of decline but optimism about future work continues to rise
The construction sector has now been in recession for two years, according to the latest data from the Chartered Institute of Purchasing and Supply.
The CIPS index fell marginally from the 48.6 recorded last month to 48.5. The index scores growth from 1-100 where any score above 50 shows positive growth.
The index score was the 24th consecutive reading under fifty, meaning the construction sector has been declining for two years. Of the three principle sub-sectors only residential showed any growth over the month.
Opportunity to tender and new work has now been below 50 for two years. The only positive news was that optimism for future work continued to rise
David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said:
“Though this was a relatively modest rate of contraction, tough operating conditions, dire weather and funding constraints dampened overall sector activity.
“Interestingly, widespread concerns that the general election fallout will result in significant spending cuts failed to dent future market expectations. Such a positive outlook, however, may only serve as a reflection of how difficult conditions currently are, rather than painting a picture of how good they will be in the future.”