Britain's construction industry continued to expand in July amid solid growth in housebuilding and commercial business, a survey said today.
The Chartered Institute for Purchasing and Supply said its seasonally adjusted index for construction eased to 54.7 in July from 55.8 in June, but it was still well above the 50.0 mark that divides expansion and contraction.
The survey by CIPS and NTC Research said growth in new business underpinned the rise in activity, although the pace of order book growth eased from a peak reached in June.
"The strongest trend continued to be seen in commercial activity . . . housing activity registered its best performance for six months, posting a solid gain over the month," CIPS said in its report.
The seasonally adjusted housing activity index climbed to 53.8 in July from 51.2 in June. This may provide further evidence that the British property market is stabilising.
Expectations also improved in July, rising to 77.5 - their highest level in five months - from 76.1 in June. CIPS said strong demand boosted builders' confidence, with over 60 per cent of respondents saying they expected a rise in activity over the coming year.