Construction sector offers triple boost

A SHAFT of light shone into the subdued economy yesterday as new data showed construction activity grew in December for the 12th consecutive month.

Residential, commercial building and civil engineering all expanded – the first time the three sub‑sectors grew simultaneously for nine months. Economists said the data muddied the waters on whether GDP contracted in the final quarter of 2011 and potential recession looms.

The Markit/CIPS purchasing managers construction index rose to 53.2 in December from 52.3 in November – a reading over 50 denotes growth.

Sarah Bingham, an economist at Markit, said: “The survey suggests the sector should make a positive contribution to the economy in the final quarter of the year.”

Construction accounts for 7 per cent of GDP, and the focus switches today to the latest data from the key services sector, accounting for 75 per cent.