Buyers’ index once again suggests growth in construction, but for how long?

Buyers’ index once again suggests growth in construction, but for how long?

The latest construction index from the buyers’ body CIPS shows growth in construction in May sped up slightly.

The overall activity index rose from 58.2 to 58.5. That suggests a respectable amount of growth (see graph) given that anything above 50 is growth.

However while the figures are positive now there appears to be little appetite to consume hopes that growth will continue.

As the chief executive officer of CIPS, David Noble, says: “Civil engineering is a clear case in point. It has only just started to grow for the first time in two years and is an industry where public spending tends to be focused.”

However reassuring the CIPS headline figures may appear, until the effects of the restructuring in public sector spending are clear, they offer little real hope to the industry.

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