Glimmer of hope for construction upturn

Construction firms in Britain suffered another dismal month in January — but it was not as bad as December as builders hoped for better times ahead.

The Chartered Institute of Purchasing & Supply said its barometer of activity in the sector rose to 34.5 last month from 29.3 in December. It was the highest reading in three months, but the 11th month running the index has been below 50, the cut-off between growth and decline.

Analysts said it was too early to say the sector had passed the worst but noted the improvement was widespread, with activity in the housing, commercial and civil sectors climbing off December's all-time lows.

"The remainder of this quarter will be important in ascertaining if the rise in the indices in January was an aberration or a real sign of a turning point in the cycle," said Roy Ayliffe, director of professional practice at CIPS.