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- British construction sector unexpectedly rebounds in May
British construction sector unexpectedly rebounds in May
Activity in
the British construction sector rebounded moderately in May, supported by
strong residential building activity, data from a survey by Markit Economics
and the Chartered Institute of Purchasing and Logistics (CIPS) showed Tuesday. Economists
had forecast the sector to remain in contraction.
The
seasonally adjusted purchasing mangers' index (PMI) for the construction sector
rose to
Driving the
turnaround, residential building activity increased in May at the fastest pace
in more than two years Meanwhile, commercial construction and civil engineering
activity recorded further contractions, though at slower rates compared to
April.
New orders
received by construction firms increased for the first time in one year. Reflecting
the upturn in new work, production also increased for the first time since
October 2012.
Employment
levels in the sector were broadly unchanged during the month. Input costs
increased for the fortieth successive month amid cost burdens from rising
energy prices.
At the same
time, confidence among entrepreneurs in the construction sector improved in
May, with the majority of them anticipating a rise in output over the next
twelve months.
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