Monday, 8 May 2017

UK construction activity bounces back to hit a four-month high!

UK construction activity rose to a four-month high in April according to the latest survey snapshot of the sector, suggesting a reasonable start to the second quarter of 2017 for builders.

The Markit/CIPS Purchasing Managers' Index rose to 53.1 in the month, up from 52.2 in March and above City analysts' expectations of 52. Any reading above 50 indicates growth.

Civil engineering activity was the highest in a year. House building was at its liveliest since last December according to the survey.

The rate of employment growth was the highest since last May 2016.

However, commercial building remained subdued with a lower reading than in March.

"Commercial work likely will remain depressed by Brexit uncertainty, and labour shortages across the entire construction sector may become more acute as immigration from the EU declines," said Samuel Tombs, an economist at Pantheon.

The construction PMI showed an alarming dip in the immediate wake of last June's Brexit referendum result, but bounced rapidly back. The latest reading follows a better than expected figure.

Photo: Shutterstock

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