British housing construction poses strongest growth in 10 years

The British construction sector recovered at a fast pace in November with output and employment both rising at the sharpest rate in more than six years, a survey report said Tuesday.

 The market sensitive report jointly issued by Markit and the Chartered Institute of Purchasing and Supply (CIPS) said the purchasing managers' index (PMI) for construction increased sharply to 62.6 in November, from 59.4 in the previous month.

 A PMI reading of 50 points or greater indicates expansion, while below 50 indicates contraction. The construction PMI has stayed above 50 for the seventh successive month.

 Construction companies pointed to a steep and accelerated expansion of house building activity in November, with the rate of growth the fastest for 10 years, the report said, adding that work on commercial construction projects and civil engineering activity also showed robust growth.

 The survey respondents "widely pointed to more favorable business condition last month, showing rising confidence in the economic outlook and improving credit conditions helping to boost spending across the construction sector," it said.

 Meanwhile, the survey found that construction companies were more optimistic about the year-ahead business outlook. "Construction activity continues to spring back to life during the final months of 2013," said Tim Moore, senior economist with Markit.

 However, he stressed the recovery of construction sector was coming from a low base as output levels rebound from a deep and protracted double-dip recession that only really ended this summer.