UK economy in construction boost
Activity in the construction sector picked up faster than expected in May, helped by a strong rise in new orders, a survey of purchasing managers by Markit/CIPS showed on Thursday.
The Markit/CIPS headline construction PMI index rose to 54.0 in May from 53.3 in April. Economists had forecast a modest pick-up to 53.6.
The survey said employment in the sector increased for the first time since June 2010 and that firms were their most optimistic in a year about future activity.
The data suggest that construction output may have improved in the second quarter of this year after recording its biggest quarterly fall in two years between January and March. “Sustained growth of commercial activity and reports of an unblocking of order books is much needed good news,” said David Noble, chief executive at the Chartered Institute of Purchasing & Supply.
“It remains to be seen whether a marked expansion of commercial projects will help to replace what has been lost elsewhere in the coming months, but it has contributed to a small improvement in confidence.”