Investing.com – Construction sector activity in the U.K. unexpectedly improved in December, extending the period of sustained expansion to 12 months, 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 0.9 points to a seasonally adjusted 53.2 in December from 52.3 in November.
Economists had expected the index to ease down by 0.3 points to 52.0 in December.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
The latest reading signaled growth of U.K. construction sector activity that was slightly stronger than in the previous survey period. Nonetheless, the latest increase in output remained below the series average.
Growth of activity was supported by an increase in new business, which in turn led to a further rise in employment. However, confidence over future business prospects remained relatively muted.
Commenting on the report, chief executive officer at the CIPS David Noble said, “Despite the overall growth in construction output and relatively milder weather conditions, December’s PMI painted a mixed picture and therefore offered little to raise the spirits.”
He added that, “Overall expectations for the coming year were generally hopeful but continue to be skewed by wider economic uncertainties.”
Following the release of that data, the pound remained modestly lower against the U.S. dollar, with GBP/USD edging down 0.1% to trade at 1.5633.
Meanwhile, European stock markets were mixed. The FTSE 100 added 0.3%, the EURO STOXX 50 fell 0.7%, France’s CAC 40 slumped 0.35%, while Germany's DAX declined 0.4%.
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 0.9 points to a seasonally adjusted 53.2 in December from 52.3 in November.
Economists had expected the index to ease down by 0.3 points to 52.0 in December.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
The latest reading signaled growth of U.K. construction sector activity that was slightly stronger than in the previous survey period. Nonetheless, the latest increase in output remained below the series average.
Growth of activity was supported by an increase in new business, which in turn led to a further rise in employment. However, confidence over future business prospects remained relatively muted.
Commenting on the report, chief executive officer at the CIPS David Noble said, “Despite the overall growth in construction output and relatively milder weather conditions, December’s PMI painted a mixed picture and therefore offered little to raise the spirits.”
He added that, “Overall expectations for the coming year were generally hopeful but continue to be skewed by wider economic uncertainties.”
Following the release of that data, the pound remained modestly lower against the U.S. dollar, with GBP/USD edging down 0.1% to trade at 1.5633.
Meanwhile, European stock markets were mixed. The FTSE 100 added 0.3%, the EURO STOXX 50 fell 0.7%, France’s CAC 40 slumped 0.35%, while Germany's DAX declined 0.4%.