Optimism 'returning to construction sector'
Construction
7th August 2009
Although the construction industry in the UK declined last month, it is experiencing growing optimism in response to indications of economic recovery, a new report has revealed.
According to the Chartered Institute of Purchasing & Supply (CIPS), the rate of contraction in the sector has slowed, with improvements in delivery times and prices witnessed last month as a result of growing competition.
The organisation's Purchasing Managers' Index (PMI) for July was at 47, an increase on June's total of 44.5 and the slowest contraction in 16 months, something that may interest liability insurance customers.
Commenting on the results, CIPS chief executive David Noble stated that "perceived improvement in economic conditions" is boosting optimism in the sector and "an upturn looks much closer than it did just a few months ago".
However, he cautioned that "times are still tough", with 17 consecutive months of retrenchment, a sharp drop in residential building in July and high levels of unemployment.
The Royal Institution of Chartered Surveyors suggested that evidence of growing confidence among construction companies is "encouraging".
For more information on how Giles can help you with your business insurance, Click here.
