Surprise jump in building growth

Growth in the construction industry jumped unexpectedly to a four-month high last month, adding to evidence the economy started 2015 strongly, although building firms hired staff at the slowest pace in more than a year.

The Markit/CIPS UK construction purchasing managers’ index (PMI) rose a full point to 60.1, defying expectations for a slight fall to 59.0 and reaching its highest level since October.

Growth picked up across the housing, commercial and civil engineering sectors.

A similar survey on Monday showed the pace of expansion in manufacturing hit a seven-month high in February.

Survey compiler Markit reported that some companies sought to delay spending decisions ahead of the upcoming General Election in May, which is shaping up to be one of the most uncertain in modern British history.

Still, confidence among construction firms about the year ahead strengthened.

“The latest survey highlights renewed vitality within the UK construction sector, as output growth picked up further from the soft patch seen at the end of 2014,” said Tim Moore, senior economist at Markit.

“However, some construction companies noted that the uncertain election outcome could prove a temporary bump in the road for new work.”