"Construction firms enjoyed a strong finish to the third quarter of 2015, as a sustained rebound in new development projects continued to have an impact on the ground."
- Markit
Performance in the UK construction sector improved further in September, as job creation advanced to a three-month high and residential building surged the most in twelve month. At the same time, the growth in builder's activity was also boosted by the improving UK economy and record-low interest rates. The Markit Economics reported that their headline gauge for the construction sector rose to 59.9 points in September, up from 57.3 in August. The PMI measure even outshined market expectations of 57.5 points. Another figure mentioned in Markit's report showed that index for residential building increased to 62.1 in September, following the reading of 59 points in the prior month. The recent data added to evidence of strengthening in the real-estate market in the UK, after house prices reached record highs and mortgage lending surged. However, even though construction companies indicated that number of new projects rose at a robust pace in September, it appeared that the latest increase was the slowest in five months and much weaker than the post crisis peaks recorded in 2013 and 2014. Meanwhile, the latest survey highlighted the least marked deterioration in supplier performance for almost five years, which some firms linked to greater stocks at vendors. September data also pointed to softer cost pressures in construction sector, with the rate of input price inflation easing to a five-month low.
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