UK construction rose in March

UK construction activity rose in March for the first time in over two years, according to the Charter Institute of Purchasing & Supply (CIPS) Construction Purchasing Managers' Index (PMI).

House building saw the strongest rise, and it was also the seventh successive month the sector had seen growth. The survey also said that non-residential construction was up in March, but that civil engineering remained in decline.

Incoming new orders were up in March for the first time in four months, and it was only the second time since February 2008 that there had been a rise.

Despite these improvements, the survey said employment in the industry fell again in March. There was also an increase in sub-contractor availability and prices fell as a result.

Commenting on the results, David Nobel, CEO of CIPS said, "Although it's great to see the UK construction sector turn the corner after two years of relentless contraction, it's still very early days. The recession hit construction the hardest because the industry is operating from such a low base, so this upturn may be short lived.