UK March construction sector PMI rises to 58.9, highest since Dec 2003 UPDATE |
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Tue, 03 Apr 2007 10:23
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(Updating with further details)LONDON (AFX) - UK construction sector growth jumped to its highest level in over three years in March as new orders rose sharply over the month, the Chartered Institute of Purchasing and Supply said.The headline purchasing managers index rose to 58.9 in March from 57.3 in February, its highest level since December 2003, CIPS said.A reading above 50 indicates expansion.Roy Ayliffe, director of Professional Practice at CIPS, pointed to a 'significant upsurge in new orders', as well as a sharp expansion in employment levels. He also noted the 'ongoing increase in the number of businesses implementing effective marketing strategies'.The rise in new orders, however, alongside a fall in sub-contractors' availability, has affected the overall quality of work performed, he added. The survey showed the new orders sub-index rose to 60.5 from 56.2 in February, the strongest rate of growth since September 2004, with firms reporting that successful tendering and increased marketing activities had a favourable effect on new order volumes, CIPS said.The higher volumes of new orders also contributed to the highest increase in sub-contractor usage for five months, while sub-contractor availability dropped.Growth in staffing levels was its strongest since November 2004, with the employment index rising to 56.8 from 54.5, marking the ninth consecutive month of expansion.Higher quantities of purchases by UK constructors meanwhile placed further pressure on suppliers, with average lead-times lengthening at the sharpest rate since June 2004.Firms in the UK construction sector remained optimistic regarding future business activity, although the level of confidence fell to its lowest for nine months, CIPS said.jessica.mortimer@thomson.comjkm/slj/jkm/slmCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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UK March construction sector PMI rises to 58.9, highest since Dec 2003 