Signs of stability in building trade
Friday 03 December 2010
Confidence and activity in the building trade seems to have stabilised, according to the latest survey from the Chartered Institute for Purchasing and Supply (Cips), but the severe weather conditions will threaten the sector's slow recovery.
The Cips index rose slightly in November to 51.8 from 51.6, against expectations of a small decline. Any reading above 50 represents expansion, and civil engineering is leading what growth there is. House building activity, by contrast, contracted in November for a third month running, after a year of continuous recovery.
The data suggests that the sizeable boost given to the wider economy from the construction recovery may not be sustained for much longer.
Even so, an improvement in the business expectations index by 2.7 points to 60 suggests there will still be some contribution to GDP growth in 2011.
Howard Archer, the chief UK Economist at Global Insight, said: "It is very clear that the economy cannot rely on a major contribution from construction going forward.
"Construction activity will be hit appreciably by the Coalition Government's extended pruning of public spending as this is clearly going to hit expenditure on public buildings... and housing market activity has been moribund in recent months," he added.
- 1 King Salman: Just five days in, Saudi Arabia's new king has already overseen a beheading
- 2 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Presidential optical illusion offers clues to how brain processes faces
- 5 Grumpy Roald Dahl letter warning student to 'eschew beastly adjectives' rediscovered after 35 years
King Salman: Just five days in, Saudi Arabia's new king has already overseen a beheading
Auschwitz liberation 70th anniversary: Woman sent to three Nazi death camps describes surviving gas chamber
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Ukip Jelly Babies cause uproar on Amazon
Chilling drone footage captures Auschwitz ahead of 70th anniversary of liberation
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...
£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...