LONDON: A surge in new work across the UK construction industry in October cheered financial markets and sent the pound close to a 10-week high against a basket of currencies.
Building firms took on new work at the fastest rate for a year, according to the CIPS/Markit purchasing managers’ index (PMI) for the construction industry. The index, published on Tuesday, suggests the British economy has recovered quickly from the turmoil caused by China’s dramatic slowdown.
The figures came a day after a similar survey showing the UK’s manufacturing sector, which had slipped several gears in response to declining world trade, at its highest level of expansion in 16 months.
Markit said increased output by construction companies appeared to reflect a strong pipeline of work already underway as well as a faster growth in new orders.
“The latest rise in incoming new work was the steepest since October 2014, with construction companies highlighting new project wins from both public and private sector clients,” it said.
A slow recovery among civil engineering firms dragged down the overall growth figure for the sector, which slowed in October after hitting its fastest pace in six months in September.
