Investing.com - Activity in the UK construction sector rose at the fastest pace in five months in April, according to a closely watched business survey released on Wednesday, brightening the economic outlook for the second quarter.
Research firm Markit said its construction purchasing managers’ index to rose to 52.5 in April, compared to forecasts for a reading of 50.5.
The prior month’s reading was 47.00, which was a 20 month low.
Residential work was by far the best performing category of construction activity in April, with the rate of growth reaching its strongest since May 2017 as house building activity resumed following snow disruptions in March.
Weather-related improvements were also seen for commercial building and civil engineering activity, with both areas recording a modest return to growth after marked declines in the previous month.
“A rebound in construction activity was pretty well inevitable after snowfall resulted in severe disruptions on site during March," said Tim Moore, associate director at survey compiler Markit.
“While temporary factors make it difficult to gauge underlying momentum, the recovery from March’s low point is somewhat underwhelming and provides an indication that the construction sector has been treading water at the very best in recent months."
The report came a day after a similar survey showing that activity in the UK manufacturing sector grew at the slowest pace in seventeen months in April.
The report saw investors slash expectations for a rate hike from the Bank of England at its upcoming meeting next week after overall economic growth slowed to near stagnation in the first quarter.