Tuesday, 4 March 2014

UK Construction PMI - February 2014

U.K. construction PMI falls to 62.6 last month, from 64.6 in January - which was its highest level since August 2007. Economists had forecast the index would fall to 63 in February.

Survey compilers, Markit, said disruptions relating to "adverse weather conditions" contributed to the slowdown.

With February's heavy rains contributing to what the Met Office confirmed was the UK's wettest winter since national records began, residential activity was particularly affected. Although the sub-sector remained strong, it grew at its slowest pace in four months.

In contrast, civil construction saw its strongest month since April 1997, helped by higher spending by local authorities which in some cases was in response to the rain.

Job creation in the sector was also strong, increasing at its fastest rate for three months, with 59% of construction companies expecting a rise in output over the year.

Senior economist at Markit David Noble commented that, “Bad weather took a bite out of progress in house building, but UK construction remains on a strong growth trajectory in February.”