LONDON (MNI) – The UK construction sector expanded for the 13th
consecutive month in January, but at a markedly slower pace than in
December and employment was stagnant.
The Markit/CIPS construction data showed that while there was only
a modest rise in activity in January and growth in new orders slowed,
the sector’s employers were upbeat about business prospects. The
headline January activity index fell to 51.4 in January from 53.2 in
December.
Markit said the softer expansion rate was led by a slowdown in new
order growth.
However, confidence regarding future business activity strengthened
at its second fastest monthly rise and reached an eight-month high,
Markit said.
The headline reading was below analysts” median forecast for a
52.5 outturn.
The construction data are the second of the January CIPS UK
trilogy.
The January manufacturing data were strong, with the headline index
rising to 52.1 from 49.7 in December, taking the index to its highest
level since May last year.
The CIPS data suggest the economy has made a robust start to the
first quarter, fueling the belief the economy could avoid a technical
recession, after GDP contracted 0.2% in the fourth quarter of 2011.
–London newsroom: +44 207 862 7491; email: ukeditorial@marketnews.com
[TOPICS: MABDS$,M$B$$$]