The UK construction sector has been expanding for the third month in a row with the growth of new orders in June hitting the highest level since May 2017 and the job creation pace being the fastest in the year. However, companies are still concerned about their prospects because of Brexit.
The gauge of activity on the purchasing managers’ index for the UK construction measured by IHS Markit and the Chartered Institute of Procurement and Supply rose to 53.1 in June from 52.5 in May. Analysts had predicted the flat reading.
The rebound for the industry, according to Markit, was mainly due to residential and commercial construction. At the same time, the delivery time has increased, and since September import prices have risen sharply. Business expectations grew, but remained below the last year’s level.
The Bank of England would raise rates after it makes sure that the near-stagnation of the UK economy in early 2018 was temporary. Construction accounts for about 6% of Britain’s economic output.
