Figures show jobs boost as construction surges in the UK
Construction output in Britain grew at its fastest pace in seven months in August, boosting job creation but also putting strain on suppliers, figures showed yesterday.
The monthly Markit/CIPS purchasing managers' index for construction climbed to 64.0 in August from 62.4 in July, exceeding all the forecasts in a Reuters poll of economists.
Output grew in each of the housing, commercial and civil engineering markets, Markit said. Readings above 50 indicate month-on-month growth in activity. Those below 50 represent contraction.
British construction companies took a beating from the financial crisis and only began to grow strongly last year, helped by the economic recovery, low interest rates and programmes designed to boost demand for homes.
But construction of new homes remains below levels needed to meet demand and the Bank of England has said that risks from the housing market pose the biggest domestic threat to the UK economy.