Mixed messages coming from construction sector

BRITAIN'S construction industry grew again in June, figures revealed yesterday, though uncertainty over the economy sent confidence to its lowest level for six months.

The Markit/Cips purchasing managers' index, where a reading of more than 50 represents growth in construction activity, slowed slightly to 53.6 in June, from 54 in May, but was still above market forecasts of 53.5.

Commercial construction slowed but remained the strongest performing sub-sector, civil engineering rallied from a weak May, though house building fell for the second time in three months.

Employment also decreased over the month, the survey noted, as the number of new orders slowed, while confidence slumped from a 12-month high in May to the lowest since January as concerns grew over the availability of public and private sector finance.

Sarah Bingham, economist at Markit, said: "The worry is that the level of business confidence has fallen to a six-month low in the sector."

Howard Archer, chief economist at IHS Global Insight, said that while the report points to growth, there are indications in the survey that the sector is losing momentum.