Tuesday, 7 May 2013

UK Construction PMI - April 2013

Hopes for a rebound in the UK construction industry were given a boost earlier this week when the PMI figures revealed that the sector almost returned to growth in April.

The index rose to 49.4 in April, up from 47.2 in March, now only marginally below the 50 level that separates growth from contraction.

As well as exceeding economists' expectations for a reading of 48, it was the best performance since last October.

While the sector as a whole is struggling to regain strength, the construction of residential property remained the stand-out performer, with new house building schemes keeping output and employment broadly stable across the industry.

We’re not quite there yet though. Overall demand remained weak, with new business volumes declining for the 11th consecutive month. Although the fall was small, it added to the longest run of declining new business since the steep recession of 2008-09.