UK construction sector remains firmly in positive territory in October

The UK construction sector expanded at a slightly lower pace in October but remained firmly in positive territory, data released on Tuesday showed.

The latest Markit construction purchasing managers’ index declined from 59.9 in September to 58.8 last month, in line with analysts’ expectations and comfortably above the 50 threshold that signals no change.

While the pace of expansion remained weaker than seen on average in 2014, the latest reading was comfortably above the pre-election low of 54.2 recorded in April, Markit added.

The continued expansion was driven by the fastest increase in new work for 12 months, while higher levels of activity were recorded across all three broad categories of construction monitored by the survey.

However, housing activity growth eased from September’s 12-month high and the latest rise in civil engineering was the slowest since May, while commercial building work increased at the sharpest pace for eight months.

“Another relatively buoyant construction PMI reading indicates that the sector remains in rude health,” said Tim Moore, senior economist at Markit.

“Rather than acting as a drag on the economy, as suggested by recent GDP estimates, the sector is continuing to act as an important driving force behind the ongoing UK economic upturn.”