GROWTH in the UK’s construction sector rose for the second consecutive month in June, thanks to increased residential building activity.
The Purchasing Managers’ Index (PMI) from Markit/CIPS showed that construction activity had risen from 50.8 in May to 51 in June, although this slightly missed expectations of 51.1.
“June’s construction data is one of the final pieces in the puzzle when it comes to survey evidence for second quarter UK economic performance, and the sector’s upturn adds to the upbeat news flow ahead of Mark Carney’s first policy meeting at the Bank of England later this week,” said Tim Moore, senior economist at Markit.
“The improvement in overall construction output simultaneously raises chances of strong second quarter UK GDP growth, and reduces the likelihood of imminent additional policy stimulus from the Bank of England.
“Although the construction sector faces a long and fragile road to recovery, June’s survey highlights a nascent turnaround in optimism about future output levels in the sector. “