UK Services and Construction Sectors Grow
Latest Markit/CIPS UK PMI figures show strong growth in Services & Construction Sectors (Source: Supply Management, 4th January 2017)
In the UK Services Sector 2016 ended with strong expansion; growth accelerated for third straight month to 17-month high and new business increases at fastest rate since July 2015. Output price inflation hits 68-month record.
The final batch of UK PMI® survey data for 2016 from IHS Markit and CIPS signalled that the dominant UK service sector expanded sharply in December, rounding off the strongest quarter of the year. The rate of expansion of activity accelerated for the third month running to the sharpest since July 2015, fuelled by stronger growth in new work. Employment rose at a pace unchanged from November’s seven-month high, and sentiment towards the 12-month outlook strengthened despite ongoing uncertainty regarding Brexit and European elections. The survey data also signalled that inflationary pressures in the sector remained substantial, with prices charged rising at the strongest rate since April 2011.
The Index remained above 50.0 for the fifth consecutive month in December, indicating a continued recovery in growth following a contraction in July linked to the EU referendum. Moreover, the Index rose for the third consecutive month to 56.2, from 55.2, signalling the fastest expansion since July 2015. The rate of growth was also sharper than the 20-year long-run survey average.
To See the full Markit/CIPS article on Services in Supply Management
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In the UK Construction Sector 2016 ended with a robust and accelerated upturn in new work and Construction output increases at fastest pace since March. Input cost inflation was however at highest level since April 2011
UK construction companies signalled a positive end to the year, led by the fastest rise in new order volumes since January 2016. Stronger demand patterns resulted in sustained job creation and a broad-based upturn in business activity during December. However, the construction sector continued to experience intense cost pressures as suppliers passed on higher imported raw material prices. The latest rise in overall input costs was the steepest for just over five-and-a-half years.
At 54.2 in December, up from 52.8 in November, the seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI®) signalled a robust and accelerated expansion of overall construction output. The headline index has now posted above the 50.0 no-change mark for four months running, and the latest reading signalled the fastest pace of expansion since March 2016. Anecdotal evidence suggested that improving order books and a general rebound in business conditions had helped to lift construction output in December.
The survey’s headline figure is the seasonally adjusted Markit/CIPS Services PMI Business Activity Index, a single-figure measure designed to track changes in total activity. Readings above 50.0 signal growth compared with the previous month, and below 50.0 contraction.
At 54.2 in December, up from 52.8 in November, the seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI®) signalled a robust and accelerated expansion of overall construction output. The headline index has now posted above the 50.0 no-change mark for four months running, and the latest reading signalled the fastest pace of expansion since March 2016. Anecdotal evidence suggested that improving order books and a general rebound in business conditions had helped to lift construction output in December.
The survey’s headline figure is the seasonally adjusted Markit/CIPS Services PMI Business Activity Index, a single-figure measure designed to track changes in total activity. Readings above 50.0 signal growth compared with the previous month, and below 50.0 contraction.
To See the full Markit/CIPS article on Construction in Supply Management