Uk­con­struc­tion steadyas­firms play­catch-up

Belfast Telegraph - Business Telegraph - - News - BY HE­LEN CAHILL

OUT­PUT in the UK con­struc­tion in­dus­try held steady in May, as firms con­tin­ued to play catch-up from a pe­riod of se­vere weather in the first quar­ter.

The Markit/cips UK Con­struc­tion pur­chas­ing man­agers’ in­dex (PMI) re­mained at 52.5 last month, beat­ing es­ti­mates which pre­dicted a read­ing of 52.

A read­ing above 50 in­di­cates growth. Fol­low­ing the an­nounce­ment, ster­ling nudged up 0.12% against the US dol­lar at 1.336.

Com­mer­cial ac­tiv­ity improved, but there was slower growth in both res­i­den­tial and civil en­gi­neer­ing projects.

House­build­ing re­mained the strong­est sub-sec­tor in the in­dus­try, with a PMI of 55.7, as com­pared to 52.2 and 50.6 for the com­mer­cial and civil en­gi­neer­ing sec­tors re­spec­tively.

Sa­muel Tombs, chief econ­o­mist at Pan­theon Macro­eco­nomics, said: “The long in­vest­ment time hori­zons for both com­mer­cial and civil en­gi­neer­ing projects mean that both sec­tors likely will re­main de­pressed un­til some clar­ity emerges over the UK’S long-term re­la­tion­ship with the EU.”

Some com­pa­nies said the un­usu­ally good weather helped them to re­bound from the Beast from the East.

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