The index revealed that the UK construction sector showed its strongest growth for over a year in June.
Overall output growth was driven by increased housing activity and new order growth reporting a 13-month high. The overall index posted at 51.0, up fractionally on the previous month's 50.8. However, despite the only slight improvement the figure showed construction output was continuing to expand. Any reading above 50 indicates expansion while a reading below 50 indicates contraction.
The figures demonstrate the industry is showing real evidence that it is turning the corner and the growth is being underpinned by a consistent rate of new orders and rising employment levels in the sector.
David Noble, CIPS CEO commented:
"A new dawn is emerging in the construction industry, with confidence of a sustained recovery beginning to build thanks to two months of consecutive output growth and the pace of new oders ecpansion hitting a 13-month high. Housing is the leading light sustaining last month's performance, meanwhile commercial and civil engineering activity stabilised, arresting months of decline giving further cause for optimism.
"The strongest growth in new business orders for over a year is also driving employment upwards, resuting in confidence hitting its highest level since April 2012. This enthusiasm may also have been bolstered by the Government's support for new house building. Whether expectations match reality, only time will tell.
"Suppliers still bear the scars of the recession reflected in a lack of stock and limited capacity. Coupled with higher average cost burdens, this is placing pressure on supply chains and cost margins. This needs to be rectified, if the sector is to build on this momentum."
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