Construction in surprise growth

BRITISH construction activity unexpectedly grew a little last month, a survey showed yesterday, but confidence among firms in the sector dropped to the lowest level in nearly five years. While the IHS Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) recovered to 50.8 points from 48.1 points in September – just above the 50 point mark that signifies growth – that still marked the second-weakest reading since July 2016. A poll of economists conducted recently had pointed to an unchanged reading for the sector, which accounts for about 6 percent of overall British economic output. Official data has shown construction output shrank in the second and third quarters of 2017, so the weak PMI is unlikely to alter the thinking of Bank of England officials, expected to announce an interest rate hike. – Reuters