Construction activity in the U.K. jumped in the second month of the year by the largest amount in eight months, rebounding from a slump at the end of last year, according to The Daily Telegraph. On Wednesday, the Markit/Chartered Institute of Purchasing and Supply activity index for purchasing managers was seen nearly three points higher for February than the month before, with the 56.5 reading marking the highest rate of growth since June. The jump represents a substantial rebound from the 2.5% contraction in construction output in the last quarter of 2010.
The data served as confirmation for Howard Archer of IHS Global Insight that “The construction sector is on course for reasonable growth in the first quarter of 2011.” The gain was driven by a turnaround in new orders and increased homebuilding, while commercial construction completed a full year of growth. However, sentiment was lower due to looming government austerity cuts, which could weigh on civil engineering projects and reduce Briton’s disposable income. The report showed that the sector shed jobs at the slowest pace in eight months, although input costs gain at the fastest rate since August 2008.