Spiralling fuel costs for construction sector overshadow performance

A ROBUST performance from the construction sector in March was overshadowed yesterday by further warnings over the spiralling cost of fuel, oil and steel.

The latest Markit/Cips purchasing managers' index (PMI) survey for the construction sector - where a reading above 50 indicates growth - fell to 56.4 in March, slightly down on the eight-month high of 56.5 in the previous month.

Economists had forecast that the rate would fall to 54.8, but each of the three sub-sectors of the industry - civil, residential and commercial - recorded continued growth in March.

There were further signs of inflationary pressure after the industry said input prices rose to a 31-month high, driven by higher raw material prices. Other "worrying" signs about the sector's health have also emerged, as confidence was dented by austerity cuts, while growth in new orders slowed to below its historical average.