UK Construction Shows Mixed Data in February

Britain’s building boom shifted from the construction of new homes to civil engineering projects, according to figures for last month which indicated that a long-awaited recovery in infrastructure development is underway.

The Markit/CIPS UK construction purchasing managers’ index (PMI) showed that buoyant orders and an increasing number of invitations to tender had supported industry optimism.

The index slipped slightly to 62.6 in February, down from a six-and-a-half year high of 64.6 in January. Markit said the index has posted above the 50 level in each month since May 2013. A figure above 50 shows the industry expanded in the previous month.

Housebuilders blamed the wind, rain and flooding for the dip in activity, though other parts of the construction industry seemed largely unaffected.

Nevertheless growth in commercial activity, which covers the construction of offices and factories, also eased in February, and was the weakest since November 2013.

Civil engineering activity jumped after local authorities, which are still expected to make huge budget savings over the next couple of years, found the funds for capital projects and maintenance, though in some cases only in response to recent flooding and adverse weather conditions.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza