–Oct CIPS Construction Index 53.9 Vs 50.1 In Sep: Markit/Reuters
LONDON (MNI) – The construction sector saw a sharp rise in activity
in October, according to a CIPS/Markit survey released the day after
their manufacturing survey showed the sector contracting rapidly.
The latest data highlight the unpredictability of some of the CIPS
monthly outturns. The CIPS/Markit Construction Index rose to 53.9 in
October from 50.1 in September, hitting a five-month high.
The outturn was well above analysts’ median forecast for a 50
outturn.
The manufacturing sector PMI slumped back into contractionary
territory in October at 47.4 from a downwardly revised 50.8 in
September.
Sarah Bingham, Markit economist, said construction new orders had
recovered from September’s modest decline but “the outlook for the
sector remains uncertain, with October seeing a further weakening in
sentiment regarding business expectations; confidence was at its lowest
level since December 2008.”
George Buckley, economist at Deutsche, said the data came as
“something of a surprise”, noting that while construction accounts for
only 7.5% of the UK economy its recent volatility means it can
have a sizable impact on quarterly GDP outturns.
–London newsroom: +44 207 862 7491; email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$]
