LONDON (Reuters) – Britain’s construction sector extended a strong recovery from COVID’s lockout restrictions earlier in December, a study showed Thursday, helping the wider private sector economy to slow down growth.
Housing was the biggest driver of construction growth, reflecting the rise in builders’ confidence from rising prices and property purchases since mid-year, as lock-in loops decreased and property purchase taxes went down. to cut.
IHS Markit / CIPS Construction Purchasing Managers Index (PMI) fell to 54.6 in December from 54.7 in November, but remained comfortably above the 50 mark that separates growth from shortening, as is it from June.
“Sustainable development in construction order books has led to an increase in employment numbers for the first time in nearly two years and the most optimistic growth prospects since April 2017,” said IHS Markit economics director Tim Moore.
The wider British economy has not been doing as well since COVID cases began to rise from the end of September, leading to a four-week closure in England in November and open loops that have been -into this week as a result of a new more contagious variant.
The all-sector PMI, which is controlled by the services industry, barely returned to growth in December, rising to 50.8 from the November five-month low of 49.5.
Wednesday’s services PMI data painted a picture of companies continuing to struggle as restaurants, pubs and many other consumer-facing businesses remained closed or under severe restrictions.
Many economists believe Britain is in a recession, with the Bank of England estimating that the economy traveled by just over 1% in the fourth quarter while others predict further shortening in early 2021.
Britain has recorded the highest death toll in Europe since COVID-19 at more than 76,000 and saw its economy shrink by a fifth in the second quarter of 2020, the worst decline among the seven largest world economies.
Reciting with David Milliken; Edited by Catherine Evans