Growth in Britain’s construction industry hit a seven-month high in October as housebuilding rose, but slowing order books and soaring prices for building materials darkened the outlook, a survey showed on Wednesday.
The Markit/CIPS UK Construction Purchasing Managers’ Index(PMI) rose unexpectedly to 52.6 from 52.3, confounding a Reuters poll forecast for a drop to 51.8. Sterling and government bonds showed little reaction to the figures.
While the survey chimed with signs the economy has maintained momentum since June’s Brexit vote, weakening growth in new orders and rocketing costs suggested next year will prove more difficult.
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