Construction business in Britain grew in May, powered on by the strong housing market, although growth was at a slightly slower pace than in April, a key survey showed today.
The Chartered Institute of Purchasing and Supply said its seasonally adjusted purchasing managers' index for construction fell to 56.3 in May compared with 57.6 in April.
Nonetheless, May's figure was the 64th straight month of growth, with the index remaining well above the 50 mark that separates contraction from expansion.
"While purchasing managers saw a slight ease in the rate of construction sector growth during May, conditions nevertheless remained buoyant," said Mr Roy Ayliffe, director of professional practice at the Institute.
"Growth was driven principally by strong gains in new orders, although some firms reported gaps between the completion of existing projects and the commencement of work on new projects."
The survey showed the housing sector continuing to expand at the fastest rate of the three broad areas of construction activity, with the rate of growth of housing activity up slightly compared to the previous month.
The housing activity index rose to 59.1 from April's reading of 58.9. The commercial construction sector also posted strong growth in activity, albeit at a slower rate than in the previous month.
After rising in each of the previous twelve months, levels of civil engineering activity were slightly lower in May, falling to 49.5 from April's 53.7.
Input price inflation rose substantially as shortages of steel and surging oil prices drove up input costs faster than in April. The seasonally adjusted input prices index rose to 75.7 from 70.0 in April.
Construction firms remained strongly upbeat that activity levels would be higher in a year's time but the degree of optimism slipped slightly, registering 77.9 compared to April's 78.9.