The UK’s construction sector continued to contract in December, according to the latest CIPS/Markit index.

The seasonally adjusted CIPS/Markit Construction Purchasing Managers’ Index (PMI) posted 47.1 in December, signalling a 22nd successive month of decline.

Following an increase in November new order volumes contracted, while staffing levels were cut again.

However, construction companies firms predict a recovery in the sector this year, particularly within the housing market, would result in higher demand.

Sarah Ledger, economist at Markit, says: “Sentiment over future business activity remained positive, with many construction companies anticipating a recovery in the industry during 2010. Underpinning this, residential construction activity has now increased for four successive months.”

Steve King, director at Kings Permanent Recruitment, which recruits estate agents, told Recruiter: “With the increased level of business, I have seen over the past four months or so, I think the construction sector will recover.

“There has been quite a lot of recruitment at the big corporate estate agents and at the independents. I know of numerous agents that are recruiting for new sites.”