Surging construction activity boosts British economic outlook
CONSTRUCTION firms reported an acceleration in growth, new survey data show.
The construction purchasing managers’ index (PMI) released by Markit yesterday jumped to a score of 60.1 in February from January’s 59.1. A score above 50 indicates growth, with higher figures implying faster growth.
Construction activity is continuing to rebound from a 17-month low it reached in December, when the PMI was 57.6. Growth picked up across the housing, commercial and civil engineering sectors. Figures from the Office for National Statistics show that the construction sector was a drag on the UK’s economic growth in the final three months of 2014.
A PMI survey on Monday showed the pace of expansion in UK manufacturing hit a seven-month high in February, while the PMI for the dominant service sector is published today. If the service sector PMI also registers a rise, it would likely mean a reversal of the UK’s slowdown in growth.