Investing.com – Britain's construction sector rose more-than-expected in January, 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 53.7 in January, after falling to 49.1 in December.
Economists had expected the index to increase to 49.7 in January.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
According to the data, an improvement in weather conditions at the start of the year helped to boost construction work, while there were also gains in new business. Despite rises in both new orders and activity, employment nonetheless fell again.
Commenting on the report, chief executive officer at the CIPS David Noble said, “Despite the growth of activity, an air of caution persists amongst construction companies as employment levels continue to fall.”
He added that, “the rise in raw material prices as well as the latest VAT hike will add to the worries for the sector.”
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD gaining 0.37% to hit a three-month high of 1.6206.
Meanwhile, European stock markets were up. The FTSE 100 climbed 0.62%, the EURO STOXX 50 rose 0.11%, France’s CAC 40 eased up 0.03%, and Germany's DAX added 0.09%.
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 53.7 in January, after falling to 49.1 in December.
Economists had expected the index to increase to 49.7 in January.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
According to the data, an improvement in weather conditions at the start of the year helped to boost construction work, while there were also gains in new business. Despite rises in both new orders and activity, employment nonetheless fell again.
Commenting on the report, chief executive officer at the CIPS David Noble said, “Despite the growth of activity, an air of caution persists amongst construction companies as employment levels continue to fall.”
He added that, “the rise in raw material prices as well as the latest VAT hike will add to the worries for the sector.”
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD gaining 0.37% to hit a three-month high of 1.6206.
Meanwhile, European stock markets were up. The FTSE 100 climbed 0.62%, the EURO STOXX 50 rose 0.11%, France’s CAC 40 eased up 0.03%, and Germany's DAX added 0.09%.