House building confidence 'still subdued'

Posted: 05 Jan 2012 12:55:14 GMT

Concerns remain over future market conditions for the construction industry.

House building confidence in the UK remains subdued, new research has shown.

The seasonally adjusted Markit/Chartered Institute of Purchasing and Supply (CIPD) Construction Purchasing Managers Index revealed that although all three broad sub-sectors of the construction industry registered growth of output in December, optimism regarding future business prospects is still low.

According to the findings, general concerns over client confidence and market conditions mean people are not getting carried away over what is to come.

Sarah Bingham, economist at Markit, noted the last month of 2011 saw higher activity for house building, commercial construction and civil engineering.

The industry figure added: "However, the sustainability of the overall rise in output remains uncertain, with confidence about the year ahead still relatively subdued."

One area in which house building may flourish in the near future, however, is London, as mayor of the capital Boris Johnson recently announced plans to deliver 55,000 affordable homes in the city by 2015.
 

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