More growth in construction sector
Monday 04 July 2011
Britain's construction industry grew again in June, figures revealed today, though uncertainty over the economy sent confidence to its lowest level for six months.
The Markit/CIPS Purchasing Managers' Index, where a reading of more than 50 represents growth in construction activity, slowed slightly to 53.6 in June, from 54.0 in May, but was still above market forecasts of 53.5.
Commercial construction slowed but remained the strongest performing sub-sector, civil engineering rallied from a weak May, though house building fell for the second time in three months.
Employment also decreased over the month, the survey said, as the number of new orders slowed, while confidence slumped from a 12-month high in May to the lowest since January as concerns grew over the availability of public and private sector finance.
Sarah Bingham, economist at Markit, said: "June data rounds off a further solid quarter of growth, albeit down on the first quarter. This contrasts with the surprising weakness seen in the official data for the first three months of the year."
She added: "The worry is that the level of business confidence has fallen to a six-month low in the sector, which suggests that companies are expecting growth to weaken over the next 12 months."
Howard Archer, chief economist at IHS Global Insight, said that while the construction PMI points to clear growth, there are indications in the survey that the sector is losing momentum.
"This is obviously unwelcome news, particularly given that the survey evidence on the construction sector has tended to be significantly healthier than the hard data in recent months," he added.
Construction makes up about 7% of the total economy and has been one of the most volatile areas of the economy in recent quarters, swinging from strong growth in the middle of last year to contraction in the last quarter of 2010 and first quarter of 2011.
- 1 Eurovision 2015: Graham Norton returns with another cutting commentary - his best lines
- 2 Purity balls: Girls in the US making virginity pledges as fathers vow to 'protect purity'
- 3 Eurovision 2015 winner: Sweden beats Russia and Italy to take title from Conchita Wurst
- 4 Mother 'will allow son's circumcision in return for release from prison'
Greek hospitals cannot afford painkillers, scissors or sheets as budget cuts bite
Purity balls: Girls in the US making virginity pledges as fathers vow to 'protect purity'
Bulgarian seaside resort Sunny Beach is cheapest for beer
Female Muay Thai champion hustles coaches to give them a beating
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
Report finds that Britain's wages are the most unequal in Europe
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...