He said, "New construction orders data for April released this morning provides further tentative evidence that the worst of the downturn in the economy may have been seen. Total orders rose for the second consecutive month to stand 26% above the February low. Some caution is required as this data is notoriously volatile; new orders in the three months to April were still 8.7% lower than in the previous three month period.
"That said, the pick-up in orders in the housing sector is particularly noteworthy. Orders in private housing have jumped a hefty 57% over the past couple of months. Although in terms of actual numbers, this still represents a relatively low level of activity the improving picture is consistent with reports from housebuilders that they have seen inventory levels being rundown of late."
