UK Oct construction PMI surprises positively, highest since March 2016

The construction sector activity in the UK economy continued its solid pace of expansion and unexpectedly rose in the month of October, hitting the highest levels since March 2016, a fresh report from Markit Economics showed on Wednesday.

The final Purchasing Managers' Index (PMI) in the UK jumped to 52.6 points in Oct, after having booked 52.3 points in Sept. Markets had predicted a drop to 51.8 last month.

Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI® , noted, “The UK construction sector has started the fourth quarter in a positive fashion, with the latest survey data revealing a moderate rebound from the downturn seen during the summer.”

“Construction growth was dependent on a solid recovery in residential work, as civil engineering and commercial building struggled for momentum in October.”