- Tim Moore, Markit senior economist
British construction sector ended 2015 on a high note, as business activity in the sector rebounded from a seven-month low in November, thanks to an increase in commercial building on the back of the UK economic recovery. The Markit/CIPS Construction PMI climbed to 57.8, up from 55.3, surpassing economists forecast of 56.0. Within the sector, commercial construction enjoyed the strongest performance in December, followed by residential construction. The UK construction remains one of the most volatile components on the output side of GDP, and was among major downward drivers in the third quarter of 2015, when it dropped 1.9% in the reported period. However, Markits' data revealed that companies in the sector were optimistic about 2016.
Earlier in the week Markit reported weakness in the UK manufacturing sector. The Markit/CIPS manufacturing PMI dropped to 51.9 last month, sliding to the lowest level in three months, compared with 52.5 in November. Manufacturing failed to add to Britain's economic growth throughout the first three quarters of 2015, with the services industry being the main driver of economic expansion. The output and new order growth slowed further in the reported month.
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