- Howard Archer, IHS Global Insight's
Activity in the British construction sector rose at the slowest pace in 17 months in December, but housebuilding remained robust, with residential construction enjoying the strongest year since at least 1997. The Markit/CIPS construction PMI fell to 57.6, compared with the 59.4 reading in November. While the pace of activity growth eased for the third consecutive month, this was still above the 50-mark threshold, which separates expansion from contraction. The three components of output included in the index pointed to diverging trends in the last month of the year. Housebuilding and commercial construction continued to increase at a solid clip, even though the pace was weaker than in the preceding month. Civil engineering, however, dropped slightly, stopping a 17-month stretch of continues growth.
Confidence in the construction sector remains strong, with 52% of survey participants expecting an increase in business activity in 2015, while only 13% predicted a contraction. New business volumes continued to climb in the reported month, but the rate of growth declined for the sixth consecutive month and was the slowest since June 2013. Job creation in the construction sector was slightly below the November level, while the rate of hiring remained above the long-term average.
© Dukascopy Bank SA