Builders battle on as construction decline continues

The rate of decline in the construction industry accelerated during February, findings from the Chartered Institute of Purchasing and Supply (CIPS) have shown.

The CIPS purchasing managers’ index, which measures activity across the construction sector, dropped from 48.6 in January to 48.5 in February. In the CIPS’ index, anything below 50 represents a decline, so the latest result will no doubt fuel fears that the construction industry is some way off a recovery.

Areas particularly affected were commercial property construction and civil engineering, while new construction orders were down also for the month.

In spite of the reduced activity, the CIPS said that building firms’ expectations for the next 12 months had actually improved. It said that many builders believed that “ongoing recovery in general economic conditions would boost the amount of opportunities to tender”.

Last month, the Federation of Master Builders (FMB) urged the Government to do more to support construction, calling for a 5% VAT cut on repair and maintenance works on residential properties to create more employment opportunities in the industry.