LONDON (MNI) – The construction sector saw activity decelerate in
November, while Q3 new orders surged in the third quarter, largely
recovering the ground lost in Q2, data issued Friday showed.
The CIPS/Markit November Construction PMI showed activity still
expanding, but at a slower rate than in October. National Statistics
data out at the same time showed Q3 new orders rising 12.8% on the
quarter, having plunged 15.7% in Q2.
The headline CIPS construction activity index came in at 52.3 in
November, compared with an originally reported 53.9 for October. New
business rose on the month, reinforcing the message from the
construction orders data that the business pipeline has improved.
The 12.8% rise in Q3 construction new orders matched the rise in Q4
last year, with the data highlighting the extreme volatility of the
official construction data series. Q2 data were impacted by the Royal
Wedding, with the attendant extra bank holiday.
The National Statistics figures showed construction new orders well
below year ago levels.
Q3 new orders were down 5.5% on the year and in the Q4 2010 through
Q3 2011 period were down 11.1% on the same period a year earlier.
“The rate of expansion slowed since October and was only modest,
highlighting the wider economic headwinds currently facing the sector,
but the ongoing expansion suggests that the sector may provide a
positive contribution to economic growth in the fourth quarter,” Sarah
Bingham, Markit economist, said.
–London newsroom: +44 207 862 7491; email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$]