The market had expected a slight fall but yet again we post a very good figure well above expectations.
Cable breaks 1.5600 to 1.5603
PMI rises to highest since August 2007
Residential construction was the biggest driver with output at the fastest pace since June 2010. Civil engineering also had it;s best month since September 2007
There is still a worry about a housing bubble that may be created by governments financial housing schemes, but the large increases in residential building will do a lot ease those worries as it keeps supply coming into the market instead of it facing a squeeze from lack of properties.
Tim Moore, Senior Economist at Markit, said:
“The latest Construction PMI figures are yet another
indication that the UK economy has performed
impressively over the summer months. A steep
upturn in civil engineering activity suggested that
public sector demand has joined residential building
as a key driver of construction output growth during
August.
“With overall output levels now rising at the fastest
pace for around six years, it seems highly likely that
the construction sector will provide another positive
contribution to UK GDP in the third quarter of 2013.
David Noble, chief executive officer at CIPS got even more excited saying;
“A new dawn is breaking in construction. The
industry recorded the fastest pace of growth since
2007 in August, leaving the dark days of recession
behind. Builders have seen a step change in recent
months and are now starting to show their true
potential to the UK economy. Nowhere is this more
true than in new business, where growth is at its
second-strongest in almost six years, leading to
more jobs and increasing confidence.
They’ll be some Babycham popping tonight folks.
