UK Construction PMI Hikes to Unexpected 55.8 Last Month
Since May 2017, the construction sector activity in the UK has been accelerating at an unexpected pace. In the latest updated report from Markit Economics released this Thursday, last month in July, the UK construction PMI evidenced an unexpected hike to 55.8.
In June 2018, the Purchasing Managers’ Index (PMI) was noticed to be at 53.1 and suddenly, the PMI has jumped from 53.1 to 55.8.
As per the senior Economist at IHS and author of Markit/CIPS Construction PMI, Time Moore the July data of the UK construction sector has recorded a breakthrough in the performance with output growth evidenced at the strongest for just over a year.
UK Construction Sector Evidenced the Sharp growth
Not only, this year has shown great results in the UK construction sector since last year but, it has also been seen that the demand conditions have picked up this summer. As per the records, the new business volumes expanded at the strongest rate since the month of May 2017. Also, the reports clearly depict the increase in the workforce numbers to the greatest extent for just over two and a half years. As per the July reports and Markit’s survey, the new orders jumped in July while the house buildings in the UK also expanded sharply since December 2015.
This hike in the UK Construction industry might also fuel in the optimism regarding the strength of the UK economy on the day Bank of England policymakers expected second interest rate hike in the space for nine months.
As per the latest reports on the UK construction industry, the house building turned out to be the bright spot for the growth. It is not that only residential constructions played a dominating role in this growth of the UK construction industry instead, it will be quite apt to give equal credit to both commercials as well as the residential projects. This is the highest peak that this construction sector in the UK has evidenced since December 2015.