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UK Construction Sector Activity Hits 4-Month High Despite Brexit Uncertainty

Published 04/12/2018, 09:31
Updated 04/12/2018, 09:33
© Reuters.

Investing.com - Activity in the UK construction sector unexpectedly accelerated to a four-month high last month, although business confidence remained at low levels due to Brexit-related uncertainty.

Research firm IHS Markit said its construction purchasing managers’ index rose to 53.4 in November up from 53.2 the previous month and higher than forecasts for 52.5.

Growth of new work picked up since October and increased demand underpinned the fastest rate of jobs growth in the sector since December 2015.

The rate of job creation was the fastest since December 2015, but business confidence remained relatively subdued, with companies noting that Brexit-related concerns had weighed on their growth projections for the next 12 months.

"The latest overall rise in construction output was the fastest since July, helped by a stronger contribution to growth from house building activity,” IHS Markit economics associate director Tim Moore commented in the report.

“Business confidence regarding the year ahead outlook for construction work picked up from October's recent low, but remained weaker than seen on average in the first half of 2018,” he added. “Survey respondents widely commented that Brexit-related uncertainty had held back business optimism in November.”

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