4 February 2014, 17:27  British construction sector expands

The British construction sector expanded at the fastest pace in nearly six-and-half years in January as strong order growth boosted activity across all sectors, with residential building rising to a ten-year high. Survey data released by Markit Economics and the Chartered Institute of Purchasing and Supply (CIPS) on Tuesday showed that the seasonally adjusted purchasing managers' index (PMI) for the construction sector climbed to 64.6 in January from 62.1 in December. Economists had forecast a decline to 61.5. The index has now stayed above the no-change 50 mark for the ninth month in a row, and reached the highest level since August 2007. Driving the upturn, housing activity grew at the strongest pace in more than ten years. At the same time, both commercial building work and civil engineering activity expanded at the steepest rates since the summer of 2007. New orders placed with British construction firms increased for the ninth successive month in January, and at a rate that was the biggest since August 2007, helped by the ongoing upturn in domestic economic conditions and easier access to finance. Responding to the increase in workload, firms raised their employment numbers across the sectors, extending the current sequence of job-creation to eight months. Positive domestic market conditions and the bright outlook for the year ahead also supported hiring. The survey showed that confidence among constructors, regarding business conditions in the coming year, improved in January to the highest level since September 2009. "January's survey provides reassurance that the UK construction recovery remains on track, Markit senior economist Tim Moore said.

© 1999-2024 Forex EuroClub
All rights reserved