Construction sector strengthens in February

The UK construction industry saw further growth in February, the fastest seen in the sector for 11 months, according to key Purchasing Managers’ Index (PMI) figures.

The Markit/CIPS PMI for construction rose to 54.3 increasing from a reading of 51.4 in January. This came despite analysts expecting to see a fall. A reading above 50 indicates growth in a sector.

New orders were also at the highest for 21 months, as confidence in the sector increased.

Continued strength in the Construction industry increases the chances of the UK avoiding a double-dip recession, especially as other important PMI reports such as Manufacturing also indicated growth in February.

Manufacturing saw lower growth in January as increasing oil prices curtailed profit margins slightly.