LONDON – Britain’s construction sector grew at its fastest pace since mid-2021 in February as disruption from the Omicron coronavirus wave eased and input costs rose at the slowest pace in nearly a year, a survey showed on Friday.
The IHS Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) jumped to 59.1 from 56.3 in January, its highest since June last year.
A Reuters poll of economists had pointed to another reading of 56.3.
Residential work was the strongest in eight months and overall new order growth was the fastest since last August.
Shortages of materials and labour continued to hamper builders but the peak of price pressures appeared to have passed and input cost inflation was its softest since March 2021.
The Bank of England is watching for signs of sustained pressure on prices as it tries to counter a rise in inflation expectations with consumer price inflation running at its highest in 30 years in January at 5.5%.
Supplier delays were considerably lower than in mid-2021, but price and supply constraints pushed overall business confidence to its weakest in just over a year.
The all-sector PMI, which covers the construction, manufacturing and services sectors combined, rose to 59.8 from January’s 54.4, driven by a jump in activity in the huge services sector.
(Writing by William Schomberg; Editing by Hugh Lawson)
