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Construction activity picked up in the UK during February, according to survey data on Monday, as a rebound in commercial work offset a continued decline in housebuilding.
The S&P Global/CIPS UK construction purchasing managers’ index rose to 54.6 points in February, from 48.4 in January.
Crossing over the 50-point no-change mark, it shows the sector saw a strong expansion in activity during the month. The reading was the highest since May last year, and well ahead of market consensus of 48.5, as cited by FXStreet.
The growth in the sector was led by a marked rebound in commercial work, as well as strength in civil engineering. Housing activity, on the other hand, fell for the third consecutive month.
‘Some firms noted that fading recession fears and an improving global economic outlook had boosted client confidence in the commercial segment. At the same time, work on major infrastructure projects such as HS2 contributed to the expansion of civil engineering activity in February,’ commented Tim Moore, S&P Global Market Intelligence economics director.
In the housing sector, survey respondents often remarked on subdued demand amid high interest rates, as well as cutbacks in new house building due to expectations of weaker demand.
‘Builders themselves remained cheerful as optimism rose sharply and almost half of the survey‘