Construction finally breaks free from recession

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A key survey showed that the battered construction sector finally emerged from recession last month after two years of decline.

It raised hopes that the economy continued to grow after New Year and came as the Prime Minister confirmed that the general election will take place on 6 May.

Brown is hoping a strong economic recovery will convince voters that he is the best person to lead Britain after the worst recession for decades.

The survey by the Chartered Institute of Purchasing and Supply found that activity in the construction sector increased last month for the first time since February 2008.

Its index of activity, where below 50 signals recession and above 50 growth, rose to 53.1 in March from 48.5 the previous month.

Housebuilding showed the strongest rise in activity while the commercial market also improved. However, civil engineering activity, which is underpinned by public spending, declined again and jobs continued to be cut across the construction industry.

CIPS chief executive David Noble said: "Though it's great to see the UK construction sector turn the corner after two years of relentless contraction, it's still very early days. The recession hit construction the hardest and because the industry is operating from such a low base, this upturn may be short-lived.

"It's worrying to see civil engineering contracting, given that mooted public sector spending cuts are yet to kick in."