"Construction is no longer the weakest link in the UK economy. The third quarter of 2013 ended with output growth riding high amid greater spending on infrastructure projects and resurgent house building activity."
- Tim Moore, Senior Economist at Markit
At least two out of three pillars of Britain's economy are still gathering pace, as report from Markit showed construction sector still expanding, albeit slower, and following Tuesday' data that indicated expansion in manufacturing sector. Figures showed that Purchasing Manager's Index, measuring activity in construction sector, stood at 58.9 last month, below August's reading of 59.1 and shy of analysts' expectations of 59.5. Sector experienced a solid revival this year, and according to the latest official data, Britain's construction industries step up on production during the second quarter, with the rate gaining 1.4%, recovering from a steep decline of 1.8% in the preceding quarter. Even though activity decelerated in September, easing from its six-year high, residential construction soared at the fastest rate in almost a decade. All three sub-sectors of construction sector grew last month, with housing expanding at the highest since November 2003, potentially easing some concerns about nation's shortfall of new homes amid growing demand for property. Furthermore, optimism also improved, with 51% expecting output to increase over the next 12 months, while employers hired more staff for the straight month in a row. The labour market is closely watched by the Bank of England, which is expected to consider raising interest rates only after jobless rate hits 7%. On Thursday, another report will unveil data from the key services sector, which accounts for about 78% of the economy, and which is also likely to slow down slightly over the corresponding period.
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