UK construction growth strongest for a year

Britain's construction sector enjoyed further robust growth in June, with the pace of expansion the strongest for a year, the…

Britain's construction sector enjoyed further robust growth in June, with the pace of expansion the strongest for a year, the Chartered Institute of Purchasing and Supply has said.

CIPS said its monthly index of construction rose to 59.8 last month from 58.2 in May, the highest since June last year but lower than the pace of activity seen in the first half of 2000. A number above 50 denotes expansion, and the index has been above 50 for 29 months.

Purchasing managers stepped up their purchasing activity in June in order to satisfy rising levels of demand, despite the increase in input prices due to material shortages, said Roy Ayliffe, CIPS director of professional practice.

All three areas of construction covered by the survey -- housing, civil engineering and commercial activity -- recorded a marked increase in activity last month, with housing the strongest. The index for housing rose to 62.5 from 61.6.