U.K. construction picks up in November

Economy 12/2/2016, 10:31 AM
U.K. construction picks up in November

Construction sector experienced a continued rebound in the United Kingdom during November, according to data released by IHS Markit on Friday. The seasonally adjusted Construction Purchasing Managers' Index (PMI) rose slightly to 52.8 last month from 52.6 recorded in October, indicating that total activity expanded for the third month running.

Business activity and incoming new work rose at the fastest pace since March, although both rates of growth remained rather subdued compared to peaks reached at the start of 2014. Due to greater workloads, construction firms ramped up hiring over the last month as well as input purchases. Still, average costs climbed during the period as the rate of inflation steepened considerably since April 2011 and suppliers continued to pass them on to customers.

Housebuilding stood as the best performing category of construction output, while a marginal rebound was reported for commercial activity, with civil engineering remaining the weakest area. Business confidence was still lower than in the first half of the year, with some companies saying that Brexit-related uncertainty had the potential to influence activity in 2017.

TeleTrader Newsroom / IB