Good news for the UK construction sector

The UK construction sector ended 2016 well, expanding at the fastest pace for nine months in December, according to a closely watched survey. Markit/CIPS Purchasing Managers' Index rose to 54.2 in December, up from 52.8 the month before, and a figure above 50 indicates expansion.

Residential building activity remained the best performing sub-category at the end of 2016. Moreover, the latest expansion of housing activity was the fastest since January. Work on civil engineering projects also picked up at a robust pace in December, while commercial construction increased marginally.

Construction companies reported an upbeat assessment for their growth prospects in 2017. Around half of the survey panel anticipate a rise in business activity during the next 12 months. The degree of business confidence edged up to a three-month high during December, with a number of construction firms citing optimism that strong order books would help alleviate Brexit-related turbulence in 2017.

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