Building sector optimism rises

A LEAP in housebuilding has spurred a fresh wave of optimism in the UK construction sector as it achieved its best performance for three years, figures yesterday showed.

Construction has been buoyed by the Funding for Lending Scheme, which incentivises banks to offer mortgages. Picture: Getty

The reading of 57 on the closely-watched Markit-Cips purchasing managers’ index was the best since June 2010 and a steep rise from the 51 recorded in June. A reading of 50 separates growth from contraction.

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The figures add to hopes of a sustained recovery in the sector after official figures showed that it grew by 0.9 per cent in the second quarter of the year, though it remains 16.5 per cent off pre-recession levels.

Construction has been buoyed by the Funding for Lending Scheme, which incentivises banks to offer mortgages.