Record boom in construction adds kick to economic growth
CONSTRUCTION is booming, posting its strongest three-month expansion for 17 years and helping to fuel growth.
That is according yesterday’s publication of the purchasing managers index (PMI) by Markit and the Chartered Institute of Purchasing and Supply, which scored 64.2 in September. This an increase from 64 in August as the survey measure stays well above the 50 mark which implies growth.
PMI was boosted by commercial property growth which was as high for September as it had been since 2007. House building growth remained strong, too, falling to 65.8 in September from 66.4 in August.
“Although only representing around six-seven per cent of GDP, the sheer pace of expansion signalled by the PMI suggests that the construction sector can provide a meaningful boost to economic growth in the third quarter.” said economist Chris Williamson of Markit.