- 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”.
Tag: Tim Moore
Construction sector ‘in rude health’ as new business surges
- 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.