Measures introduced during the Chancellor’s Budget in March 2013 are thought to have helped the construction sector to recover, with the Help to Buy Scheme leading to an increased number of first time home sales.
With the property market slowly recovering, demand for new houses has spurred the construction sector into action, putting an end to a dire six months of successive contractions.
The Markit/CIPS Construction Purchasing Managers' Index rose to 50.8 over the course of last month - up from the figure of 49.4 posted in April. Any number above 50 can be seen as representing growth, whereas a figure below 50 would mean contraction. Early signs ahead of the looming month end have indicated that June’s growth will reflect this improving trend.
There are concerns, however, that the domestic construction industry is over-reliant on residential building work, with the upswing in the sector’s fortunes corresponding with an untenable spike in homebuying.
Integrity Software’s Managing Director Justin Moule said: ‘It’s encouraging to see the construction sector registering growth at last, but it’s important that we don’t get ahead of ourselves.’
‘One swallow does not make a summer, and it’s safe to say that the industry isn’t out of the woods yet. It’s likely that UK construction firms will continue to have to tighten their belts as economic recovery slowly progresses.’