UK Construction At Decade High

The UK’s construction sector grew at its fastest pace in 9½ years during August, according to a new survey out yesterday. The Chartered Institute for Purchasing and Supply’s construction index climbed to 64.8 last month, its strongest read since February 1998, up from 61.8 in July.

Economists were surprised by the report having predicted a fall to 60.6, although any read of more than 50 indicates growth. The new orders index jumped to 67.6 in August from 66.8 a month earlier.

The report attributes the rise to a continued growth in new orders to improved marketing activity.Employment growth rose at the fastest rate since July 2000, reaching 61.0 from 59.8 in July. Companies linked increased employment to the increase in new orders.The cost of purchases, however, rose to 69.5 from 69.2 - a three-month high for price inflation. Around a third of survey respondents reported higher average costs compared with just over 1 per cent that indicated a decline.