Investing.com – Britain's construction sector activity grew more-than-expected in October, rising to a five-month high, 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 by 3.8 points to a seasonally adjusted 53.9 in October from 50.1 in September.
Economists had expected the index to ease up by 0.1 points to 50.2 in October.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
After easing to near-stagnation in September, growth of total industry activity accelerated. This was supported by renewed growth of new business.
Consequently, firms continued to recruit staff and raise buying activity.
Although U.K. constructors remained optimistic, overall, regarding activity levels in the coming year, positive sentiment was the weakest for nearly three years.
Commenting on the report, chief executive officer at the CIPS David Noble said, “U.K. construction output experienced a rebound in October, and accelerated at some pace after a broad stagnation in September. It’s still nothing to get excited about however.”
“Due to current economic conditions, it may be some time yet before we start seeing the sustained growth the sector really needs,” he added.
Following the release of that data, the pound added to gains against the U.S. dollar, with GBP/USD rising 0.51% to trade at 1.6032.
Meanwhile, European stock markets were mixed after the open. The FTSE 100 edged 0.2% lower, the EURO STOXX 50 rose 0.2%, France’s CAC 40 added 0.3%, while Germany's DAX climbed 0.55%.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index rose by 3.8 points to a seasonally adjusted 53.9 in October from 50.1 in September.
Economists had expected the index to ease up by 0.1 points to 50.2 in October.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
After easing to near-stagnation in September, growth of total industry activity accelerated. This was supported by renewed growth of new business.
Consequently, firms continued to recruit staff and raise buying activity.
Although U.K. constructors remained optimistic, overall, regarding activity levels in the coming year, positive sentiment was the weakest for nearly three years.
Commenting on the report, chief executive officer at the CIPS David Noble said, “U.K. construction output experienced a rebound in October, and accelerated at some pace after a broad stagnation in September. It’s still nothing to get excited about however.”
“Due to current economic conditions, it may be some time yet before we start seeing the sustained growth the sector really needs,” he added.
Following the release of that data, the pound added to gains against the U.S. dollar, with GBP/USD rising 0.51% to trade at 1.6032.
Meanwhile, European stock markets were mixed after the open. The FTSE 100 edged 0.2% lower, the EURO STOXX 50 rose 0.2%, France’s CAC 40 added 0.3%, while Germany's DAX climbed 0.55%.