Boost for UK construction as activity grows in June

The UK construction industry received a welcome boost today (Wednesday) after a survey revealed that activity in the sector expanded in June following a sharp downturn the previous month.

According to the latest findings from the Chartered Institute of Purchasing and Supply (CIPS), the index for the UK construction sector rose to 53.3 in June from 52.8 in May, the 53rd straight month the index has registered above the 50 mark, the point on the scale between expansion and contraction in the industry.

The sub-index for new orders rose to 58.3 in June from 57.6 in May. The monthly rate of growth was the second fastest since December 2002. The employment index rose to 52.7 in June from 52.6 in May signalling a stabilisation in the sector's labour market.

Construction firms remained very optimistic that activity levels would rise over the coming year even though the optimism was at its lowest point since November 2001, reflecting uncertainty in the UK and the world economy.