Business

Promising figures for building industry

ACTIVITY across building sites in Britain and Northern Ireland grew at its fastest pace for nearly six years last month amid a "new dawn" for the hard-hit construction industry. Figures from the closelywatched Markit/CIPS purchasing managers' index (PMI) showed a reading of 59.1 in August up from 57 in July, signalling the best rise in output since September 2007. It is the fourth month in a row of expansion in the construction sector, according to the survey, where a reading of 50 separates growth from contraction. The figures add to mounting optimism over the recovery as all sectors of the economy are showing a marked improvement, with experts claiming factories were "booming again" after the strongest growth in output for nearly two decades. David Noble, chief executive at the Chartered Institute of Purchasing & Supply, said: "A new dawn is breaking in construction. The industry recorded the fastest pace of growth since 2007 in August, leaving the dark days of recession behind." Tim Moore, senior economist at Markit and author of the PMI report, added: "The latest construction PMI figures are yet another indication that the UK economy has performed impressively over the summer months." Housebuilding remained the strongest sector, rising at a rate not seen since mid-2010, helped by the Help to Buy scheme and cheaper mortgage finance sent buyers flocking to developments.