News Column

REPEAT: UK Construction Sector Growth Quickens Unexpectedly In August

September 2, 2014

LONDON (Alliance News) - U.K 's construction activity grew at a faster pace in August, defying expectations of a slow down, results of a survey by Markit Economics and the Chartered Institute of Purchasing & Supply, or CIPS, showed Tuesday.

The Markit/CIPS construction purchasing managers' index, or PMI, rose to 64 in August from 62.4 in July, less than the 61.5 expected by economists. This marked the fastest rate of increase since January and the second-strongest rate of expansion since the pre-recession peak of August 2007.

A reading above 50 signals expansion in construction activity.

The increase in construction activity was driven by broad based improvements in all the sub-categories. Residential construction expanded the most, though the rate of expansion moderated slightly to a three-month low.

Civil engineering activity rose at the fastest pace since March and commercial construction activity continued to increase at a rate that was close to its fastest pace since the summer of 2007.

New work grew strongly in August, marking the sixteenth consecutive month of rise.

Employment levels also continued to increase, though at a slightly slower rate, after the record-high rate in July.

Meanwhile, input costs increased sharply and the rate of increase was fastest since July 2011.

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Source: Alliance News

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