Construction growth slows

Growth in the UK's booming construction sector slowed in March but continued with its robust progress, data from the Chartered Institute of Purchasing & Supply (CIPS) has revealed today (Wednesday).

The CIPS's construction purchasing managers` index showed activity in the sector eased to its slowest rate of expansion since December 2001.

The CIPS index for the sector dropped to 53.8 in March compared with 54.9 in February - any figure above 50 shows growth has been maintained.

Construction of houses - traditionally the high-flying sector in the industry - eased to its slowest rate for some 12 months.

Weaker growth was reported by construction firms to have largely reflected delays between the completion of existing work and the start of new contracts.

The housing sector continued to drive expansion of the wider construction industry in March as demand for residential property remained strong, but the seasonally-adjusted housing activity index produced by CIPS recorded 54.5 in March, down significantly from 62.3 in February.

Growth of commercial construction also continued, although the rate of increase remained subdued and was the slowest since October.

Firms added their confidence had been buoyed in March by planned expansions and expected improvements in confidence once the war in Iraq is over.