UK: PMI Construction starts expanding in May

FXstreet.com (Barcelona) - After six months of contraction, the UK PMI Construction increased to 50.8 points in May, from 49.4 points in April, according to data released today by Markit. Analysts expected only a slowdown in contraction to 49.6.

According to Tim Moore, Senior Economist at Markit: “UK construction output appears to have finally pulled out of a tailspin in May, but the latest figures suggest that the sector is worryingly reliant on residential buildingwork for thrust. Construction firms cited improving house building activity as the key factor behind a rise in new orders for the first time since May 2012. Meanwhile, shrinking spending on both commercial and civil engineering projects acted as a drag on overall new business growth.”