Battered construction sector edges ahead
Output in Britain’s construction sector edged into growth last month despite confidence hitting a near five- year low.
The Mark it/ C IP S UK Construction purchasing managers’ index ( PMI) yesterday showed a reading of 50.8 in October, up from 48.1 in Sep - temb er. A reading above 50 indicates growth.
A strong performance from house builders helped drag the wider sector back into expansion, but its latest performance was still tracking below the post- crisis trend of 54.7. The PMI report, coming on the day the Bank of England raised interest rates, also fuel led concerns over the industry’s future, with the balance of companies eyeing a rise in activity over the next year slipping to its weakest level since December 2012.
It comes after official figures released last week showed the construction industry had gone into recession after falling by 0.7 percent between July and September-the sharp est fall since the third quarter of 2012.
Tim Moore, associate direc- tor at IHS Markit, said: “Greater housebuilding was the sole bright spot in an otherwise difficult month for the construction sector.”
Civil engineering was the worst performer, while staff recruitment rose at the slowest rate in four years.
Howard Archer,EY ITEM Club’s chief economic adviser, said: “A tepid economy, and heightened economic, political and Brexit uncertainties threaten to hamper the construction sector.
“Clients are clearly cautious over committing to major construction projects.”