UK construction PMI jumps to 53.1 in April, surprises positively

The construction sector activity in the UK economy accelerated its pace expansion and surprised markets to the upside in April, a fresh report from Markit Economics showed on Wednesday.

The final Purchasing Managers' Index (PMI) in the UK rose unexpectedly to 53.1 points in April, after having booked 52.2 points in March. Markets had predicted a 52.0 reading.

Key Points:

Sharpest rise in total construction output so far in 2017

Civil engineering expands at fastest pace for 13 months

Suppliers’ lead-times lengthen to greatest extent since June 2015

Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI®, noted, “April’s survey reveals a positive start to the second quarter of 2017, with a robust upturn in civil engineering activity helping to boost the construction industry. There were also more encouraging signs from the house building sector, as growth recovered to its strongest so far this year. However, the performance of the commercial building sector remained subdued in the context of the past four years.”