The construction sector continued to contract in November, according to the latest CIPS/Markit PMI index.

The index recorded a reading of 47.0 in November - the 21st consecutive month of contraction, though the pace of decline eased since October. Employment also continued to fall sharply.

However, new orders rose for the first time since February last year and construction firms remain positive over future business conditions.

David Noble, chief executive at the Chartered Institute of Purchasing & Supply (CIPS), says: “There is little festive cheer for the UK construction industry which still remains very vulnerable. Despite a slight boost in volumes of new business, construction firms are still feeling the effects of the worst economic landscape seen in over a decade. 

“One positive is that the sector is not contracting as sharply as it was this time last year and purchasing managers are remaining upbeat about future business conditions. A broader economic recovery will improve the sector’s outlook. However, it appears we are still some way off from returning to growth let alone reaching the level it was at only two years ago.”

Andrew Conder, managing director at ACS Resourcing, told Recruiter: “People are more positive in the marketplace. Some are saying they can’t see the economic situation improving but the consensus is that things are looking up for next year. The housing shortage is not getting any smaller and there is a greater need for office space. I think slow momentum will pick up in the second quarter of next year.”

Ray Connolly, director at Fawkes & Reece, adds: “There is a more positive outlook for the start of next year. Sentiment is pretty positive - 2010 looks more positive than I was expecting.”