U.K. Construction Sector Grows at Fastest Pace Since 2018

(Bloomberg) -- The U.K.'s construction industry grew for the first time in ten months in February, as reduced political uncertainty helped unleash pent-up demand.

IHS Markit said its index of building activity rose to the highest level since December 2018 as the housing and commercial sub-sectors saw particularly strong improvements. That came even as some firms noted that severe weather conditions led to work being delayed.

The survey is the latest to show a rebound in economic activity after Boris Johnson's decisive election victory at the end of last year. Still, there are doubts over how long that can last as the outbreak of the coronavirus starts to hit the global economy and disrupt British supply chains.

“There were widespread reports that pent-up demand released since the general election had helped to boost workloads,” said Tim Moore, economics director at Markit. “The fly in the ointment is the uncertain impact of the coronavirus outbreak on U.K. economic growth prospects.”

Markit's headline index jumped to 52.6 from 48.4 in January, beating economists' expectations for a slight improvement to 49. A reading above 50 indicates expansion.

To contact the reporter on this story: Jill Ward in London at jward98@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, David Goodman, Brian Swint

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