02/02/2011 - Construction faces 'tough year'
The construction sector managed to return to growth last month following December's bad weather but 2011 could still be a year of disappointment and dashed hopes, a survey has shown.
Improved weather conditions provided a boost to the industry during the month as the latest Markit/CIPS Purchasing Managers' Index (PMI) survey - where a reading above 50 indicates growth - climbed to 53.7, up from 49.1 in December.
Housebuilding, commercial and civil sectors alls saw increased activity in January for the first time since August but employment levels in the industry fell for the seventh consecutive month. As a result the survey said "an air of caution" is hanging over the sector.
With uncertainty surrounding the economic recovery, increased costs for raw materials and VAT, the survey concluded this could be a difficult year for the sector.
As a result of the current financial uncertainty, firms might be wise to make sure they have tradesman insurance in place to avoid incurring unnecessary costs if anything happens.
The construction industry, which had helped to lead economic growth in the second and third quarters of 2010, slipped into decline in December for the first time since February.
But January's figures saw a return to growth in activity, with civil the strongest performing category, while housebuilding brought an end to a four-month period of contraction, and commercial grew for the 11th month in a row.
Copyright © Press Association 2011
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