Builders see light at end of the tunnel as growth gains impetus

A “new dawn” is breaking for Britain’s builders as construction enjoyed its strongest growth for more than a year, the latest snapshot of the industry’s fortunes revealed today.

Housebuilding — lifted by the Government’s Help to Buy scheme — was the best-performing area in the sector, although the picture for hard-pressed commercial and civil engineering companies also improved, according to the Chartered Institute of Purchasing & Supply (Cips).

Its activity index, where a score over 50 signals expansion, improved to 51 in June. This was the best reading since May 2012 and the second successive month of overall industry growth, Cips said. Confidence is at its highest level for over a year and the industry is taking on staff at the fastest rate since last September.

The news follows a buoyant June for manufacturers and continues the decent recent run for the UK economy. Cips chief executive David Noble said: “A new dawn is emerging in the construction industry, with confidence of a sustained recovery beginning to build ... This enthusiasm may also have been bolstered by the Government’s support for new housebuilding. Whether expectations match reality, only time will tell.”

Housebuilder Persimmon offered more signs that the Government initiative is boosting the market since its introduction in April as reservations jumped 30% year on year. Persimmon has made 1,124 sales under the Help To Buy.