UK construction output rises sharply in February

<p>February’s construction output rose sharply in the UK.</p>

Construction output in the UK rose sharply during February, according to the latest Markit/Chartered Institute of Purchasing and Supply (CIPS) UK Construction PMI.

The figure for last month was revealed to be 62.6, which is down from the 77-month high of 64.6 that was recorded in January but is still a positive sign for the sector's health. Any figure over 50 denotes growth in the industry.

Reports from respondents who took part in the survey suggested that disruptions related to adverse weather conditions contributed to softer construction output growth in February.

House building activity was particularly badly affected during the course of the month.

Tim Moore, senior economist at Markit and author of the Markit/CIPS Construction PMI, said: "While some froth has come off overall construction growth in February, the latest data showed that job creation picked up to a pace rarely seen since the summer of 2007.

"Moreover, in the latest survey there were six construction companies forecasting higher activity over the year ahead for everyone anticipating a reduction."

Construction is viewed as one of the major indicators of growth in the UK economy. The recovering strength of the industry seen in recent weeks is likely to be taken as a positive sign for the economy as a whole.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.