- Tim Moore, senior economist at Markit
Even though activity in the British construction sector declined at the start of the fourth quarter, it still remained above the line of contraction. The Markit/CIPS construction Purchasing Managers' Index (PMI), a gauge measuring the performance of the construction sector, slowed down again in the tenth month of the year to 58.8 from 59.9 in the preceding month. The result was in line with analysts' forecasts. Despite the slight drop, the figure still remained above the 50-point-threshold, indicating the sector's expansion. A reading below 50 represents a contraction, while 50 shows no change.
The latest PMI construction figure was well above the pre-election low of 54.2 booked in April. The survey indicated that the industry was driven by a high level of commercial building activity, while employment in the sector kept on accelerating at its fastest pace since November 2014. Activity increased in all three construction sub-categories. The most recent official data revealed that output in the construction industry was the biggest downward drag on the GDP in general in the third quarter, tumbling by 2.2% - the biggest fall since the third quarter of 2012.
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