Construction sector grows at fastest pace since 2007

City A.M. Reporter
THE construction sector expanded in May at its fastest pace since September 2007, with employment rising for the first time in two years, a survey of purchasing managers showed yesterday.

The Markit/Chartered Institute of Purchasing and Supply construction PMI rose to 58.5 in May from 58.2 in April.

May was the third consecutive reading above the 50 mark which separates growth from contraction.

“It was encouraging to see growth within the UK construction sector maintained during May, with all three sub-sectors -- housing, commercial and civil – indicating an expansion in activity,” said Sarah Ledger, an economist at Markit.

But Ledger warned an impending public spending squeeze meant the growth was unlikely to continue.