UK construction activity inches higher in October

 
City A.M. Reporter
UK construction edged up in October, but firms remained cautious about future business, a survey showed this morning.

The Markit/CIPS Construction Purchasing Managers’ Index rose to 50.9 from 49.5 in September, just above the 50 line that indicates growth.

It marks the highest reading since July.

However new orders fell for the fifth consecutive month, and firms reduced headcount at the fastest pace since August last year, the survey showed.

Tim Moore, senior economist at Markit, said this morning: “The bigger picture remains bleak.”

“The year-ahead business outlook was still relatively subdued during October, as survey respondents cited weak spending patterns and squeezed budgets among clients,” he added.