THE construction sector is showing signs of recovery, with companies increasingly buoyant about their prospects, according to a North-East industry boss.

Jeff Alexander said businesses’ optimism is returning as a steady flow of contracts maintains order books.

Mr Alexander’s comments come as a contrast to a latest industry report, which suggests the sector has suffered a slowdown, with confidence and job creation on the slide.

However, Mr Alexander, director of Tyneside-based Surgo Construction and chairman of the Construction Alliance North-East (CAN), which aims to help firms win a greater share of public sector work, said his experience conflicts with experts’ view.

He told The Northern Echo: “There is certainly a feeling of cautious optimism and things seem to be going in the right direction.

“There are more opportunities for regional companies; there aren’t too many big jobs around, but we seem to be doing better as an industry.

“There is optimism for the remainder of the year.”

Mr Alexander, who is also president of the Northern Counties Builders Federation, added work on CAN was progressing well, with more now receptive to the qualities of local companies.

He added: “What we are trying to do is convince people that there are a lot of good companies around in the North-East to do the work.

“In the past, a lot of work in the public sector has gone out of the region to national, larger contractors.

“All that means money flowing out of the local economy, so it would be hugely beneficial if it stayed here.

“We are getting a strong response from the public sector.”

Last week, Mr Alexander’s company, Surgo, revealed it had secured contracts worth nearly £10m to carry out work across housing, healthcare and education projects in the North-East, which includes a £950,000 agreement to refurbish and extend Polam Hall School, in Darlington.

Yet, according to the latest Markit/CIPS purchasing managers’ index survey, which scrutinises the sector’s performance in detail, Surgo’s successes are somewhat of a rarity.

Tim Moore, Markit senior economist, said the industry decelerated in January, with commercial work’s strong performance diluted by housebuilding’s second weakest expansion for more than two-and-a-half years.

He added: “Construction firms struggled for momentum at the start of this year, with heightened economic uncertainty acting as a brake on new orders and contributing to one of the weakest rises in output levels since the summer of 2013.

“Business confidence appears to have subsided across the construction sector, and companies are less upbeat about their prospects for growth than at any time since December 2014.”