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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