The CIPS/Markit Purchasing Managers' Index® (PMI®) for construction rose sharply this month from 30.9 in March, to 38.1 in April.

The indices follow trends in housing, commercial and civil engineering output, which all rose in April, though the overall figure still remains below the neutral 50 mark. Housing, once again, is the worst-performing area of the construction industry.

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Poor demand, difficult conditions and intense competition are blamed for the latest drop in new orders, as well as severe cuts in customer budgets. Though feelings are still subdued, optimism about the future is at its highest since June last year. There have also been reports of some company expansion, promotional activity and progress on projects previously on-hold.

Roy Ayliffe, Director at the Chartered Institute of Purchasing & Supply, said:"The darkness that has been gathering across the UK construction economy over the past thirteen months lifted slightly in April but, against a backdrop of ongoing market uncertainty, fewer new orders and fierce competition, blue skies are still a fair way off."

(GK/JM)