News Article

Sector Analysis

Construction sector growth

By CreditMan Monday, April 19, 2010

Reacting to the news that the construction industry has now grown for the first time since February 2008, according to the latest activity index from the Chartered Institute of Purchasing & Supply (CIPS), Jason Heath, construction specialist at Bibby Financial Services, said: "As an industry which for every £1 spent produces an increase in GDP of £2.84, showing just how important it is to the economy, a welcome spotlight now shines on some good news for the sector and considering the struggle of the recent recession, this report is cause for tentative celebration.

"Our own construction business has seen a 12 per cent rise in new business volumes in the first quarter of this year, mirroring the CIPS report, indicating a surge in new orders is helping the sector return to positive territory in March. All eyes will now be looking to the outcome of the General Election which will shape future levels of public sector spending and the subsequent impact on this important stream of business for the construction industry. We are ready to help construction firms with their cash flow should they find themselves needing to bridge a gap in payments or simply fortify their current finances."