"The future is looking bright for the UK construction industry as it soars into the final quarter with its strongest performance in over six years, boosted by a strengthening surge in activity broadening out across all sectors"
- David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply
Britain's currency soared against the U.S. Dollar on Monday, hitting 1.5965, after Markit Economics said constructions activity within the economy advanced at the highest pace in six years in October, mostly led by homebuilding. A gauge of activity in construction sector hit 59.4 in October, from 58.9 a month earlier, and outpacing analysts' predictions for a 58.7 reading. Moreover, it inched higher away from the 50 threshold that separates growth from contraction. One of three pillars of U.K. economy is rising like a phoenix from the ashes on the back of strong activity in housing, commercial and civil engineering. Britain's homebuilders are encouraged by government schemes like Help-to-Buy, which mostly drove the expansion last month. The data also showed that work on commercial projects, which has lagged behind private housebuilding so far, expanded at the fastest rate in 18 months, while improvements in the economy forced construction companies to increase hiring at the fastest since September 2007.
With all manufacturing, construction and key services sectors expanding at a sustain pace, the Confederation of British Industries decided to upgrade U.K. growth forecast for 2013 and 2014, while saying the amelioration would gather pace in 2015. According to their estimates, the GDP would grow 1.4% this year, while during the next two years they see economy expanding 2.4% and 2.6%, respectively.
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