Markit – SpecNews

Britain’s construction sector stages recovery

A rise in house building activity and commercial work has helped drag Britain’s construction sector back from a seven-month low.
However, the report cautioned that the overall rate of expansion remained slightly weaker than seen on average over this period.
The survey noted that UK construction firms had ended 2015 with a “robust” level of overall business activity, adding that commercial building increased on the back of improving UK economic conditions, leading to new orders.
Housing activity also showed strong growth, picking up from a 29-month low in November.
IHS Global Insight economist Howard Archer said it was a “reassuring survey”.

He also pointed out that the November data on the construction sector from Britain’s purchasing managers was also softer.
DISMAL official data yesterday revealed weaker than expected growth in the construction sector that followed on a sharp slide in output in the third quarter of the year.
Output in the sector – accounting for about 7 per cent of British GDP – edged up just 0.2 per cent in October, significantly undershooting City forecasts.
The ONS said infrastructure had risen to almost £4 billion (28 per cent) of total construction industry output over the year to September 2015.
The Office for National Statistics also said that Q3 construction output was now estimated to have slumped by 1.9 per cent, heavily influenced by a 5.6 per cent fall in housebuilding.

THE UK’s construction sector remains in “rude health”, driven by the fastest rise in new business for a year, a report said.
Tim Moore, senior economist at Markit, said: “Another relatively buoyant construction PMI reading indicates that the sector remains in rude health.
But last month’s reading remains comfortably above 50 which indicates growth, and marks two-and-a-half years of sustained output growth across the sector.
The sector was driven by an uplift in commercial building, with housing and civil engineering work also expanding but at a slower rate.
The latest Markit/CIPS Purchasing Managers’ Index (PMI) survey for the sector showed that activity eased slightly to give a reading of 58.8 in October, although this was down from a seven-month high of 59.9 in September.