UK construction PMI returns to expansion in October, a positive surprise

The construction sector activity in the UK economy stalled its downbeat momentum in October and surprised markets to the upside, a fresh report from Markit Economics showed on Thursday.

The final Purchasing Managers' Index (PMI) in the UK unexpected rose to 50.8 points in Oct, after having booked 48.1 points in Sept. Markets had predicted a 48.0 reading.

Key Points:

Marginal upturn in construction output, led by housing activity

Civil engineering and commercial building decline again in October

Confidence regarding 12-month outlook drops to weakest since December 2012

Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI®, noted: "Greater house building was the sole bright spot in an otherwise difficult month for the construction sector. Sustained declines in civil engineering and commercial activity meant that large areas of the building industry have become stuck in a rut.”