British construction growth hits seven-month peak
In October, growth in the UK’s construction industry hit a seven-month high because house building added, though slowing order books along with surging prices for building materials darkened the overall outlook, as Wednesday’s poll revealed.
The Markit/CIPS UK Construction Purchasing Managers' Index went up suddenly to 52.6 from 52.3, thus confusing a Reuters survey forecast for a dip to 51.8. The British pound as well as government bonds reacted moderately to the figures.
While the poll chimed with clues that the British economy has maintained momentum since Brexit, weakening growth in new orders as well as rocketing costs suggested that next year will be more difficult.
The downturn in the construction sector kept easing in October, though it would appear to be premature to conclude that the sector is reviving.
Survey compiler IHS Markit told that respondents held back investment spending due to uncertainty surrounding the UK’s exit from the European Union.