-Tim Moore, senior economist at Markit
Activity in the British construction sector, which accounts for some 6.3% of the country's total GDP, cooled more than expected in March, undermined by concerns over May's general election. The monthly Markit/CIPS UK construction PMI dropped to 57.8 last month following a rise to 60.1, the highest level in four month in February. Expectations were for the index to ease to 59.5 in the reported month. Yet, the gauge remained confidently above the contraction line for the 23rd straight month. Growth weakened across the industry, while the slowdown was most marked in the civil engineering sector. The cooler pace of construction growth is due to some businesses delaying spending ahead of the national election on May 7, Markit reported. Nevertheless, construction firms appeared to be highly optimistic about their prospects over the course of next 12 months, with confidence reaching the highest level in nine years.
The data adds to mixed bag of news earlier this week, after the Office for National Statistics said the British economy grew stronger than previously estimated in the fourth quarter, while services sector contracted in January. Markit also reported activity in the UK manufacturing sector rose to the highest in eight months at the end of the first quarter, indicating the nation's economy has been keeping momentum.
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