Construction activity continues to grow, according to new reports from NHBC and Markit/Chartered Institute of Purchasing & Supply (CIPS).
The Markit/CIPS’ report says UK construction activity in May increased for a third successive month, with the pace the fastest since September 2007. A rise in new orders drove the increase and led to a boost in employment.
But Markit economist Sarah Ledger warned it was unlikely that current growth would be sustained, due to uncertainty surrounding public spending cuts and because of the low base from which expansion is being built.
Meanwhile, NHBC said new home registration levels were on the rise across the whole of the UK.
A total of 31,038 new homes were registered during the period February-April 2010, a 74% improvement on the same period last year (17,859) and indicates consistent improvement in the housebuilding sector.
“Our figures show a steady improvement in the number of homes being built in the UK, indicating that the industry has consolidated and built on the improved conditions seen over the past months,” said Imtiaz Farookhi, chief executive of NHBC.
“The challenge will be to sustain this growth against the backdrop of an uncertain environment, as the new coalition settles in and sets out its strategy for meeting the country’s housing needs.”
NHBC statistics for the three months to the end of April 2010 show that both private and public sectors demonstrated significant improvements:
Private sector registrations were up 113% (at 20,538) when compared with the same period last year (9,627)
Public sector registrations were 10,500 – 28% higher than the same period a year ago (8,232).
