Construction confidence falls to 10-year low

The UK construction industry is experiencing the lowest confidence and activity levels for almost a decade, according to an official report.

In its monthly survey of the construction sector, the Chartered Institute of Purchasing and Supply said confidence levels in April were the lowest reported since October 1998.

CIPS blamed the fall in activity on particularly weak economic conditions, especially in the UK housing market.

Roy Ayliffe, director of professional practice at CIPS, said: “Worryingly, growth in the UK construction sector has fallen at the sharpest rate in almost nine-and-a-half years, as purchasing managers reported significantly lower levels of output and new orders.”

The survey also found that volumes of new work in the construction industry fell during March. This is only the third time in the survey’s history that this has happened.

Construction firms have also reported a sharp increase in operating costs, as the price of raw materials such as steel, oil and fuel continues to rise.

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