Britain's construction industry still in grip of recession

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In its monthly barometer of construction activity — where a score over 50 registers growth — the level fell slightly from a 23-month high of 48.6 in January to 48.5.

Civil engineering work declined the fastest, but the number of new orders received by the sector fell for a third successive month.

CIPS said the industry had been affected by poor weather conditions, difficulties lining up funding and a scarcity of building projects as Britain remains mired in the recession mentality.

But there were positive signs in residential construction levels, which improved for the sixth month running.

David Noble, chief executive at CIPS, said: "The construction sector has been confined in recession territory for two years and is still very fragile.

"Employment levels took another knock as contractors tried to keep overheads to a minimum to cope with the continuing barrage of bad news."

However, business expectations picked up in February to reach a five-month high.