Better news in British construction

Britain’s construction industry unexpectedly returned to marginal growth in July after a sharp fall the previous month, figures yesterday suggested.

The Markit/Cips construction purchasing managers’ index (PMI) beat economists’ expectations of a further decline in activity in the sector. As well as seeing growth last month, building firms also said they were more positive about the next year despite a fall in orders.

The figures came as a slight relief after a sister PMI survey on Wednesday showed manufacturing activity contracting at its fastest pace in three years.

Tim Moore, senior economist at Markit, said: “Firms are expecting, or at least hoping, the sector will receive a shot in the arm during the next 12 months.”