The Markit/CIPS Purchasing Managers’ Index® (PMI®) for the construction sector showed a more moderate pace of activity at the start of the year.
Posting at 51.4, down from December's 53.2, though confidence is highest for eight months, employment stagnates.
David Noble, CIP CEO said:
“The UK manufacturing sector has sprung to life in the first month of 2012 to defy any economic gloom, but it is too early to say whether this trend is sustainable.
“The marked decline in input prices is good news for the sector’s overall profitability. The boost in output is also welcome, but in reality is bolstered by manufacturers working through existing backlogs, which can only be a short-term fix.
“In the long-term, it’s looking like businesses will need to refocus on emerging growth markets outside the weaker Eurozone to achieve sustainable growth even though spending was at a higher level in the UK compared to last month.
“If emerging markets are the future, breakdowns in supply owing to port closures and the impact of flooding in Thailand underline the need to ensure international supply chains are sufficiently flexible, robust, with an understanding of risk mitigation to maintain business continuity.”
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