-Tim Moore, senior economist at Markit
Britain's key construction sector returned to growth last month led by a surge in homebuilding, suggesting construction sector might add to overall U.K. economic growth in the second quarter. A gauge of activity jumped to 50.8 from 49.4 in April, beating analysts' expectations of a 49.8 reading and edging above the 50 level, which divides expansion from contraction. Latest economic data have pointed to the beginning of stabilisation, with factory index soaring to a 14-month high in May. Moreover, the Bank of England during its monthly policy meeting is expected to keep the pace of bond-purchase programme on hold at 375 billion pounds.
Figures also showed that house-building hit its fastest pace in 26 months and boosted overall new orders for the first time in a year. During the first quarter of this year, construction sector was the biggest drag on the nation's economy and the recent data is adding to signs that economy is on the path of sustainable recovery. However, overall growth within the sector remains below its long-run average of 53.9. Nevertheless, there are other signs that Britain's economy is clawing its way out of stagnation.
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