Construction activity growth slows down

The building industry lost some of its forward momentum last month, research from the Chartered Institute of Purchasing and Supply (CIPS) has revealed.

Although the industry continued to expand in March, the pace of growth in total construction activity slowed slightly against the previous month.

The CIPS construction Purchasing Managers' Index registered 58.1 during March against 58.3 in February, with any figure above 50 indicating growth.

The rate of growth in new orders achieved by companies in the sector was slightly slower, registering 62.2 against February's 62.5.

However, housebuilders generated better business, recording 58.3 against 56.9.

Jobs in construction also improved, picking up from 53.2 to 54.2.

Firms were confident of a further improvement in activity levels during the next 12 months, although the seasonally adjusted Future Business Activity index, standing at 74.3, reflected a less marked degree of optimism than the previous month's 79.9.

Roy Ayliffe, director of professional practice at the CIPS, said: "Expansion looks set to continue."