03 Nov 2011

The UK's construction sector unexpectedly grew at the fastest pace in five months in October, according to a closely-watched survey.

The Markit /CIPS purchasing managers' index increased to 53.9, up from 50.1 in September. A reading of 50.0 indicates no growth.

The report said businesses continued to recruit staff and raise buying activity. However, activity in the housing construction sector continued to fall.

Markit economist Sarah Bingham said: "The outlook for the sector remains uncertain, with October seeing a further weakening in sentiment regarding business expectations.

"Furthermore, the increase in employment recorded was fractional, despite the rise in new business and activity. This suggests that constructors remain tentative about the longevity of the sector's growth profile."

David Noble, chief executive at the Chartered Institute of Purchasing & Supply, added: "UK construction output experienced a rebound in October, and accelerated at some pace after a broad stagnation in September. It’s still nothing to get excited about however.

"Due to current economic conditions, it may be some time yet before we start seeing the sustained growth the sector really needs."