- Tim Moore, senior economist at Markit
Growth continued to ease in the British construction sector, with the corresponding reading of activity coming in at the weakest level in more than a year and clouding the country's economic outlook. Nevertheless, business activity in the construction sector, which makes up around 6.3% of the nation's total GDP, remained firmly above the 50-mark threshold, which separates contraction from expansion, for the 19th straight month in November. Markit/CIPS construction PMI fell to 59.4, compared to October's reading of 61.4 and against forecasts of 61.0. All three areas of construction recorded softer rates of activity growth in November, led by a slowdown in civil engineering, with home building still remaining the strongest performing area of activity in November, ahead of commercial construction.
A report from Markit on Monday showed UK manufacturing output growth unexpectedly accelerated to the fastest pace in four months in November amid strengthening domestic demand. A services index due today is expected to climb to 56.5 from 56.2. Regarding the total British economic growth, it slowed to 0.7% in the July-September period following the 0.9% GDP growth in the previous quarter, according to the official data. The BoE forecasts the economy to expand at an annual 3.5% pace in 2014, and then slow to 2.9% next year.
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