Peaks and valleys
The latest survey by the Chartered Institute of Purchasing and Supply suggests that the construction industry is experiencing strong growth – with activity in the commercial and residential sectors gathering pace while public-sector development stalls amid an uncertain future for the public sector following today’s General Election.
Building writer Brian Green says the growth rate seen in the latest CIPS survey is ironic, given that the construction industry is “sucking in its tummy and preparing for savage cuts”.
The construction Purchasing Managers Index (PMI) reading for April was 58.2 overall, up from 53.1 in March, which is the second consecutive month of growth and the highest reading since September 2007. In addition, those surveyed were positive about future activity levels.
However, the uncertainty about forthcoming public spending cuts and the continued reduction in construction jobs combined with the rising costs of materials means that it’s not all good news.
Green concludes that the April results might just be a “short-lived peak between two valleys”, adding that “the valley we have just departed was extremely deep: the question is how deep that second valley might prove to be”.
