Construction activity in the UK fell at slowest rate for almost two years in January

According to figures from the Chartered Institute of Purchasing & Supply (CIPS), the construction purchasing managers’ index stood at 48.6 during January, up from 47.1 in the previous month, signalling the smallest fall in activity during the current 23-month period of contraction.

Housebuilding was the only one of the three broad areas of construction activity monitored by the survey to record growth in January. However, further declines in commercial and civil engineering activity were reported, although the rates of decline eased.

“Firms are now measuring performance from such a low base level that there’s a general consensus things can’t get much worse,” said David Noble, chief executive officer at the CIPS.

“Construction continues to be the worst performing sector of the UK economy – struggling in the face of credit supply shortages and overall economic uncertainty.”