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Construction industry “in recession for two years”

The construction industry has now been in recession for two years, according to the latest data from the Chartered Institute of Purchasing and Supply.

The CIPS index fell marginally from the 48.6 recorded last month to 48.5. It was the 24th consecutive month it has been under 50, which is the point at which positive growth begins.

The only positive news was that optimism for future work continued to rise

David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said: “Though this was a relatively modest rate of contraction, tough operating conditions, dire weather and funding constraints dampened overall sector activity.

“Interestingly, widespread concerns that the general election fallout will result in significant spending cuts failed to dent future market expectations. Such a positive outlook, however, may only serve as a reflection of how difficult conditions currently are, rather than painting a picture of how good they will be in the future.”

About Fiona Russell-Horne

Fiona Russell-Horne
Group Managing Editor across the BMJ portfolio.

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