Construction recovery adds to good news flow
The biggest increase in commercial projects since 2007 helped buoy the sector, which has staged a steady recovery after being hit badly during the economic downturn.
The latest purchasing managers’ index (PMI) from the Chartered Institute of Purchasing & Supply (Cips) and Markit dipped to 62.1 in December from November’s 62.6 – its highest level since August 2007 when the credit crunch was taking hold.
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Hide AdDecember’s reading was slightly ahead of analysts’ forecasts and well above the 50 mark that separates growth from contraction.
Chris Williamson, chief economist at Markit, said: “The decline merely signalled a modest easing in the rate of expansion from the surging pace of growth.”
Cips chief executive David Noble added: “Continued strong expansion marked an outstanding end to 2013 for construction, positioning the sector on a solid recovery path for 2014.”
The figures add to the picture of a sustained recovery, after data from the manufacturing sector on Thursday showed it managed its best quarterly performance in two-and-a-half years at the end of 2013, despite a slight fall in December’s reading.
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Hide AdThe construction PMI figures showed housebuilding – a sub-sector buoyed by initiatives such as Help to Buy – remained the fastest-growing area in December, though it posted a slower pace of growth than November.
Work on commercial projects and civil engineering activity continued to grow strongly, while the majority of firms was optimistic about the coming year.