UK Construction Surges in August

The construction sector expanded at its fastest pace for seven months in August, despite supply shortages holding back growth, a survey suggests.

The Markit/CIPS construction Purchasing Managers’ Index (PMI) surged to 64 in August from 62.4 in July, surprising economists who had forecast a fall.

It is the 16th month in a row that the index has been above the 50 level indicating growth.

The rise came despite the slowest delivery times from vendors since 1997.

Markit said the pace of growth was causing supply problems, with the availability of both materials and sub-contractors dropping at their fastest rate since its survey began in 1997.

As a result, it said there had also been a record rise in the rates charged by sub-contractors.

“The sector is struggling to find enough skilled tradesmen to keep pace with new work and the labour market will continue to put pressure on costs until the next wave of apprentices begin to enter the jobs market,” said David Noble, group chief executive at the Chartered Institute of Purchasing & Supply.

via BBC

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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