Construction activity in the UK unexpectedly accelerated and reached an eight-month peak in November. However, the costs in the industry are also growing and even with sharpest pace since 2011 because of currency depreciation. The Purchasing Managers’ Index (PMI) rose from 52.6 points in October to 52.8 points in November, exceeding the analysts forecasts for value of 52.2 points. The construction sector is supported by civil engineering and construction of commercial real estate, as well as steady growth in housing construction.
Order books also improved at the fastest pace for eight months and construction firms hired new workers to match the rising demand. The sector had continued to recover from a slow third quarter.
The companies indicate that observed renewal projects postponed because of Brexit, and this is a factor for improvement. However, lingering economic uncertainty and subdued investor sentiment meant that optimism towards the year-ahead outlook remained close to its lowest since early-2013.
Construction companies accelerate the pace of recruitment fourth consecutive month and he reaches six-month high.
The house building activity was the best-performing area of the construction industry despite the pace of its expansion easing back to a three-month low. The commercial activity ended a five-month slowdown to muster up a marginal rebound, while civil engineering remained the weakest area of activity. The construction firms were also boosted by a number of projects put on ice after the Brexit vote coming back on stream.
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