Growth slows for construction industry

Britain's booming housing market continued to drive expansion for the construction industry in January.

Housebuilders again provided the strongest rise in the snapshot of activity provided by the Chartered Institute of Purchasing & Supply (CIPS).

While the housing activity index recorded 59.7 in January against 60.3 in December, the rate of growth was still the slowest since last September.

The construction sector as a whole reflected the housing slowdown, showing an easing of the rate of expansion for the second month in a row but staying above the no change mark for the 48th successive month. Overall, the construction index declined from 55.0 in December to 54.2 in January.

CIPS says builders continued to see the cost of materials rise but added the rate of the increase had slowed to its weakest for 11 months. Construction firms remained optimistic for a rise in activity levels over the next year, with confidence boosted by planned expansions, new marketing strategies and an anticipated strengthening of demand.