- Markit economist Tim Moore
Output in the U.K. construction sector rose unexpectedly last month, but new work fell for the fifth month in a row, the Markit/CIPS said Friday. The U.K. Construction Purchasing Managers' Index jumped to 50.9, from 49.5 in September, climbing above 50 level, which separates growth from contraction. That is the strongest reading since July, and above analysts' expectations of a decline to 49.1.
"The construction sector continues to be hampered by major headwinds, notably including public spending cuts, an extended weak economy, a struggling housing sector, and problems in getting funding for large-scale projects," said Howard Archer, chief UK and European economist at IHS Global Insight.
"In particular, the government's spending cuts are limiting overall expenditure on public buildings, schools and hospitals."
"The year-ahead business outlook was still relatively subdued during October, as survey respondents cited weak spending patterns and squeezed budgets among clients," said Markit economist Tim Moore.
The FTSE 100 Index edged higher 0.11 per cent to 5,868.55. The broader FTSE All-Share Index rose 0.13 per cent to 3,068.72.
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