Britain's construction industry expanded at its fastest rate for 27 months in October on the back of robust growth in new work, a key monthly survey said today.
The Chartered Institute of Purchasing and Supply said its purchasing managers' index for the sector jumped to 58.9 last month from 56.9 in September - the highest number since July 2001.
A score above 50 indicates expansion, while below that level signals contraction. The construction sector is being watched closely after a big upward revision to construction output in the second quarter was almost solely responsible for the doubling by the Office for National Statistics of its estimate of overall economic growth last month.
The October New Orders Index was up to 59.5, up from the September figure of 58.6. Housing activity remained the key driver of the sector's growth. The seasonal adjusted Housing Activity Index rose to 64.9 in October from 61.6 in September - the fastest rate since April 2000.
The survey also showed growing confidence in the sector with the confidence index rising to 78.7 from 77.5, the strongest since November 2002.
Employment in the sector was also rising, with one in five panel firms reporting they had recruited more staff during the month, generally in attempts to expand capacity given the strong increase in new work.
PA