British construction activity unexpectedly picked up more speed in January, with growth reaching its highest level since the financial crisis, a survey of purchasing managers showed on Tuesday.
The Markit/CIPS construction PMI rose to 64.6 in January from December’s reading of 62.1, the sharpest expansion in UK construction activity since August 2007, when the financial crisis first started to take hold in Britain.
The number far exceeded economists’ forecasts in a Reuters poll for a reading of 61.5, and was well above the 50 mark that separates growth from contraction.
“January’s survey provides reassurance that the UK construction recovery remains on track,” said Tim Moore, senior economist with Markit, which compiles the data.
The building industry was hammered by the financial crisis of 2007-09. The pick-up in construction comes as Britain’s housing market has been boosted by falling unemployment, low interest rates and government programmes.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at firstname.lastname@example.org. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.