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Financial News: UK Construction Output Growth At 7-Month High

UK Construction Output Growth At 7-Month High

07/03/2018 - 05:15:00 (RTTNews)

(RTTNews) - The UK construction output grew at the fastest pace in seven months in June, survey data from IHS Markit and Chartered Institute of Procurement & Supply showed Tuesday.

The construction Purchasing Managers' Index rose to 53.1 in June from 52.5 in May. The latest reading pointed to the sharpest rise in construction output since November 2017.

The survey showed that residential work remained the best performing area of activity. Commercial building also contributed to the stronger overall rise in construction output. Meanwhile, civil engineering activity rose only slightly in June.

New orders grew at the fastest pace since May 2017. Higher levels of new work contributed to faster increases in employment numbers.

Construction companies indicated a rebound in business optimism from May's seven-month low.

"A cloud of uncertainty remains, given the sector's hit and miss performance so far this year and lower than average business confidence in June," Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said.

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