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Contraction slows as job losses reduce

The construction market is contracting at a slower pace with job losses reducing according to the April Construction Purchasing Managers index.

The index, which indicates building activity in the construction sector, rose to 38 from 31 in March, the slowest level of contraction for seven months.

A mark of below 50 indicates a contraction in building activity.

The Chartered Institute of Purchasing and Supply and Markit Economics index also revealed improved confidence for the future impacted on rates at which employment, sub-contractor usage and buying activity were reduced in April.

All were cut to lesser extents than during the previous month, with indices following trends in employment and input purchases hitting six- and seven-month highs respectively.

Markit economist Gemma Wallace said: “The recession in the UK construction economy, which had been generally deepening, eased off sharply in April.

“The headline PMI rose to its highest level for seven months. It was another step in the right direction, but it will take a lot more to restore confidence, and therefore demand, in the sector – let alone to pre-crisis levels.”

CIPS director Roy Ayliffe, added: “A number of purchasing managers also noted that previously postponed contracts were expected to recommence.”

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