The hard-pressed British building industry suffered its 22nd successive monthly fall in activity in December, a closely watched survey of the sector revealed today.
The compilers of the CIPS/Markit Construction survey blamed the fall on subdued demand as new orders fell in December after a small upturn in November.
Contractors also cut the number of staff again last month.
However, construction companies remained confident that a recovery will occur in 2010, CIPS said, although David Noble, the chief executive of the Chartered Institute of Purchasing & Supply, said: "Whether this optimism is based on hope rather than foresight on orders in the pipeline remains to be seen.”
The seasonally adjusted CIPS/Markit Construction Purchasing Managers’ Index edged up to 47.1 in December, from 47 in November, a pace of contraction that was broadly unchanged from previous months.
A figure below 50 indicates that activity is falling.
Although both commercial and civil engineering businesses saw further declines in activity during December, house building increased for the fourth successive month and at its fastest rate since August 2007.
However UK construction companies were also battling with a further rise in input prices in December.
Mr Noble said: “Unlike other parts of the economy, the construction sector seems unable to escape the shackles of the recession, as it entered its 22nd successive month of decline.
"Contractors are competing aggressively to secure the relatively fewer new contract tenders there are in the market...There are some glimmers of hope.
"Most significantly, the residential sector showed a marked improvement in activity. This suggests that the increase in house prices last year is beginning to have an effect on construction and encouraging new building."
UKCIG Property News, January 2010
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