THE construction industry has slumped to a near two-year low, despite rebounding from a pre-General Election slowdown.

A report says growth in the sector fell to its second lowest point since June 2013.

Industry bosses have blamed the drop on an accumulation of spending cutbacks, caused by the uncertainty of the election, and weaker business gains in March and April.

The sector fell to a 22-month low in April, when it recorded a reading of 54.2 on the Markit/CIPS purchasing managers’ index (PMI).

That number increased to 55.9 last month, with the PMI report saying job creation was at a five-month high.

Any figure above 50 separates growth from contraction.

However, it warned despite such signs of confidence, which are starting to deliver more spending, the industry must make up lost ground.

Tim Moore, Markit senior economist and author of the construction PMI, said there was much work to do, even though residential housebuilding accelerated last month, and civil engineering enjoyed a return to growth.

He said: “May’s survey provides the first sign of a post-election bounce in the sector.

“With a sustained period of policy uncertainty no longer on the horizon, business confidence surged back to its highest level since early-2006, with firms experiencing an upturn in new business growth from April’s near two-year low.

“However, it is far from certain whether the relief rally in construction confidence will usher in a lasting turnaround in output volumes on the ground.

“Despite a client spending rebound in May, all three key areas of construction activity have lost considerable momentum over the past 12 months.

“The scale of the construction slowdown since 2014 is such that it will not be fully reversed through the release of pent up demand after the election alone.”

David Noble, group chief executive at the Chartered Institute of Procurement and Supply, echoed the warnings, saying the sector will struggle to hit the heights it achieved last year.

He added: “The brakes are now off for the construction sector as it makes up some of the losses over the last few months with a steady and comfortable improvement.

“The real strength and longevity of this new momentum will be played out in the coming months, but the expectation is the sector is likely to trundle along rather than produce the same elevated progress of last year.”