A survey has suggested that the construction sector finally emerged from recession last month, after two years of decline.

The survey by the Chartered Institute of Purchasing and Supply (CIPS) found that activity in the construction sector increased last month for the first time since February 2008.

Housebuilding showed the strongest rise in activity while the commercial market also improved, but civil engineering activity, underpinned by public spending, declined again. Meanwhile jobs continued to be cut across the construction industry.

CIPS chief executive David Noble said: “Though it’s great to see the UK construction sector turn the corner after two years of relentless contraction, it’s still very early days. The recession hit construction the hardest and because the industry is operating from such a low base, this upturn may be short-lived.

“It's worrying to see civil engineering contracting, given that mooted public sector spending cuts are yet to kick in.”
 

By Nicola Storey