Construction sector unstable in UK
Construction Sector and Real estate market, which was heavily affected by recession in UK, is now showing a growth, especially for last three months. This was revealed by the market /CIPS purchasing managers' index. The index gained peak since September 2007, and it was boosted by a healthy performance from construction sector, which raised to 60.0 on the index from 60.3. The index rose slightly to 58.5 from 58.2. Along with that Employment in the construction sector also grew for the first time in two years.
Howard Archer, chief UK economist at IHS Global Insight, said that the survey reinforced hopes that the sector was "now on the mend after suffering from recession". There are fears that the sector will be badly affected by the extensive expenses cuts to be imposed by the Government in its attempts to sharply reduce Britain's £156bn deficit.
Public sector spending on infrastructure and buildings are expected to be slashed over a number of years. Business expectations among the sector continued to grow in May, but at a slower pace of 70.6 on the PMI compared with 72.1 in April.