The first growth in construction activity for two years has been recorded by the Chartered Institute of Purchasing Supply’s (CIPS) PMI index.
The monthly index reading for March was 53.1, the first time a reading has gone beyond 50 (the point of growth) since February 2008.
Housing and commercial sector orders led the way, but civil engineering activity continued to fall.
Despite this good news, the Federation of Master Builders said nearly one in three building companies were expecting their workloads to fall this year and more than half have seen a reduction in the level of private housing work in the first quarter.
The federation also warned that employment prospects were not great in the construction sector, with 55% of companies interviewed not expecting to take on any new staff over the next six months.
