Investing.com – Britain's construction sector activity rose unexpectedly in February, jumping to the highest level since June 2010, industry data showed on Wednesday.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index rose to a seasonally adjusted 56.5 in February, up from 53.7 in January.
Economists had expected the index to decline to 53.1 in February.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
According to the data, new business growth supported the sharp rise in activity. Employment fell again, but at the weakest rate in the current sequence of job cuts.
Commenting on the report, chief executive officer at the CIPS David Noble said, “A weather-beaten UK Construction sector is showing signs of repair, with stronger rates of activity and a rise in new business continuing the reversal of fortune since the end of 2010.”
He added that, “the construction sector is suffering from higher input prices which increased considerably during February.”
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD gaining 0.09% to hit 1.6279.
Meanwhile, European stock markets were broadly lower. The FTSE 100 slumped 1.45%, the EURO STOXX 50 dropped 1.71%, France’s CAC 40 tumbled 1.37%, and Germany's DAX fell 1.62%.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index rose to a seasonally adjusted 56.5 in February, up from 53.7 in January.
Economists had expected the index to decline to 53.1 in February.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
According to the data, new business growth supported the sharp rise in activity. Employment fell again, but at the weakest rate in the current sequence of job cuts.
Commenting on the report, chief executive officer at the CIPS David Noble said, “A weather-beaten UK Construction sector is showing signs of repair, with stronger rates of activity and a rise in new business continuing the reversal of fortune since the end of 2010.”
He added that, “the construction sector is suffering from higher input prices which increased considerably during February.”
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD gaining 0.09% to hit 1.6279.
Meanwhile, European stock markets were broadly lower. The FTSE 100 slumped 1.45%, the EURO STOXX 50 dropped 1.71%, France’s CAC 40 tumbled 1.37%, and Germany's DAX fell 1.62%.