Markit/CIPS report UK construction PMI better than expected

Howard Chapman, Buildingtalk Editor, on reports that the latest Markit/CIPS shows continued expansion in UK construction activity in March.

Digital Outlook reported yesterday that UK construction activity growth held steady in March, a survey by Markit/CIPS revealed.

The purchasing managers’ index remained at 54.2, above the 50 level that separates an expansion from a contraction for the 35th consecutive month. Analysts had expected a reading of 54.1.

Connor Campbell, financial analyst at Spreadex:

“Whilst, remaining unchanged at 54.2, the UK construction PMI didn’t provide the FTSE with any cause for celebration, neither did it indicate too much cause for concern, allowing the UK index to stretch out its legs and managed a 45 point rise as the morning continued”.

However, NASDAQ reports that Tim Moore at Markit wasn’t overjoyed:

“March’s survey confirms that the UK construction sector is experiencing its weakest growth phase since the summer of 2013. Residential building has seen the greatest loss of momentum through the first quarter of 2016, which is a surprising reversal of fortunes given strong market fundamentals and its clear outperformance over the past three years.

Construction firms were reliant on a rebound in commercial building and resurgent civil engineering growth to offset the slowdown in housing activity. Civil engineering delivered its strongest performance for just over a year, suggesting that a healthy pipeline of infrastructure projects continues to boost construction output.”

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