UK construction sector growing at its fastest pace in six years
Tuesday 03 December 2013
Britain's construction sector expanded at its fastest pace in six years in November, hitting its highest levels of output and employment since August 2007, according to newly released data.
The Markit/Cips Purchasing Managers’ Index of activity in November leapt to 62.6, up from 59.4 in October, registering the strongest reading since August 2007. Any reading above 50 indicates expansion.
The month’s growth, which was well above City forecasts, was supported by rising activity in commercial construction and civil engineering but the largest contribution came from residential building, as government support for the housing market kicked in.
“The construction sector does now seem to be enjoying decent, and increasingly broad-based, recovery after extended, deep weakness,” Howard Archer of IHS Global Insight said. He added that the sector, which accounts for 6.3% of the economy, would likely contribute to another strong GDP growth figure for the final quarter of the year.
The survey also showed strong expectations from building firms of future growth — the proportion of businesses anticipating a rise in output in the year ahead reached its highest level since 2009. For the sixth successive month the sector created additional jobs.
However, data from the Office for National Statistics show that at the end of September the output of the construction sector was still 13% below its peak in the first quarter of 2008. “Construction growth is still coming from a low base as output levels rebound from a deep and protracted double-dip recession that only really ended this summer,” Tim Moore of Markit said. “Although construction’s present growth trajectory may be the steepest for more than six years, there is a huge loss of output to recoup.”
The building sector grew by 1.7% quarter on quarter in the three months to September according to the ONS, with analysts identifying a boost to sentiment from the Government’s Help to Buy equity subsidies for first-time buyers.
The construction survey comes in the wake of yesterday’s snapshot of manufacturers which showed last month’s growth was the strongest in more than two and a half years. Tomorrow sees the publication of the survey of activity for the UK’s service sector, which accounts for three quarters of the economy.
- 1 Which country would be hardest to invade?
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 Royal baby girl born: Duchess of Cambridge's second child will be a princess thanks to Queen
- 5 Teen suffers embarrassing wardrobe malfunction in front of deputy PM
Which country would be hardest to invade?
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
The man who filmed the Freddie Gray video has been arrested at gunpoint
UK weather: Severe weather warning for snow and torrential rain over bank holiday weekend
Royal baby girl born: Duchess of Cambridge's second child will be a princess thanks to Queen
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
Indonesia executions live: 'Hysterical' families heard prisoners being shot dead by firing squad
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
EU exit would hit UK economy much harder than neighbouring countries, study finds
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...