Construction growth slows significantly

Construction growth last month dropped to its slowest pace since December 2001, according to the latest report by the Chartered Institute of Purchasing and Supply (CIPS), which was published today (Friday).

The CIPS's purchasing managers' index for the sector dropped to 53.4 last month from 53.8 in March, although the new orders index recorded its strongest rise this year with an increase to 58.7 from 56.3 in March.

The business confidence index remained steady at a hefty 75.6, helped by the end of the Iraq war, planned expansions in work and an increased number of public sector construction tenders.

The housing activity index rose to 55.4 in April from 54.5 in March but remained slower than the growth rate recorded throughout 2002.

Growth in commercial construction slowed with the index dropping to 50.3 in April from 51.1 in March, while average prices paid for inputs by construction firms fell back to 62.7 from 63.7 in March.