A surge in housebuilding since the beginning of the year maintained construction activity in the first quarter at levels not seen since 2007, according to a survey of the construction sector.
The Markit purchasing managers’ index (PMI) recorded a rise in housebuilding activity to 64.2 in March, offsetting a slowdown in civil engineering to keep expansion in the sector at historic highs.
The survey of 170 construction firms found that overall activity remained steady at 62.5, marginally down from 62.6 in February and well ahead of the 50 mark that separates growth from contraction. The improving weather in March after February’s rain and floods also boosted housebuilding,
Rob Wood, chief UK economist at investment bank Berenberg, said the construction sector was now roaring ahead, supported by low interest rates, the government’s Help to Buy scheme and a general feelgood factor across the economy.
He said: “With the housing market booming and confidence in the economy returning, construction growth should remain strong through 2014. Housebuilding in particular is rising fast, driven by surging prices and government subsidies.”
Read more at: http://www.theguardian.com/business/2014/apr/02/housebuilding-boosts-construction-sector-best-levels-2007