Data published by IHS Markit/CIPS showed that in November, the growth of activity in the UK construction sector accelerated - the UK Construction PMI increased to 55.5 points from 54.6 points in October, reaching the highest since July. Economists had expected an increase to 54.9.
According to the report, the acceleration of growth in the commercial construction sector offset the deterioration in the housing construction sector. Meanwhile, the growth of activity in the civil construction sector reached its highest level since August.
The data also showed that the new orders component rose to a three-month high in November, helped by an increase in customer demand. However, the rate of employment growth slowed to an eight-month low. Meanwhile, the index measuring the overall performance of suppliers has peaked since April, with about 47% of respondents reporting longer lead times.
As for inflation, the component of production costs reached its lowest level since April, with about 72% of respondents indicating an increase in purchase prices in November. Meanwhile, the level of business optimism has dropped to its lowest level in four months.