UK construction activity falls more than expected in October

| November 2, 2010 | 0 Comments
”UK

The Chartered Institute of Purchasing and Supply(CIPS)/Markit construction PMI index revealed activity slowed in October.

The index fell from 53.8 in September to 51.6 last month - confounding expectations of a more modest fall to 53.

However, the index remains above the crucial 50 level, which indicates expansion.

The figures suggest, though, that construction will not make as strong a contribution to growth in the final quarter of 2010 as it did in preceding quarters.

Activity in the housebuilding and civil engineering sectors fell in October, although an improvement was noted in commercial construction.

Construction accounts for around 6% of Britain’s economic output.

Meanwhile, the index comes shortly after figures revealed UK manufacturing activity unexpectedly grew in October.

The closely-watched CIPS/Markit manufacturing PMI rose to 54.9 in October from 53.5 the previous month.

Not only was the reading the highest since July, it surprised economists who had expected a fall to 53.1.

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