Housing beats construction slowdown
A construction index has shown house building activity grew for the fourth consecutive month in December, despite a continuing slowdown across the rest of the sector.
The construction purchasing managers’ index, which is produced by the Chartered Institute of Purchasing and Supply and Markit, found the rate of growth in housing was the strongest since August 2007.
CIPS chief executive officer David Noble said: ‘This suggests that the increase in house prices last year is beginning to have an effect on construction and encouraging new building.’
However the separate Construction Trade Survey says all areas of the construction industry contracted during the last quarter of 2009.
In response the Get Britain Building campaign said the government must do more to support the sector.
Chris Pateman, GBB spokesperson and managing director of the Builders Merchants Federation, said: ‘Government must start to think differently if we are to work and earn our way out of the current crisis. The UK construction industry is well set to be the motor of economic recovery, yet government seems oblivious to the wealth creation opportunities it provides.
‘Strategic investment in infrastructure – such as realising the green potential of existing UK housing stock – is just one way we can drag ourselves up by our bootstraps, and one which can only benefit the Treasury from the get-go.’
Have your say
You must sign in to make a comment