04 December 2006 | Antony Barton
Construction in the UK showed strong growth in November but at a slower rate than the previous month, according to the latest CIPS/RBS purchasing managers' index.
A reading above 50 indicates growth, and in November the index revealed a drop for industrial activity to 54.8 from October's figure of 58.1. October's growth rate was the strongest since March 2004. Housing activity showed the strongest growth, up to 55.6 from 53.5 the previous month, but the rate of expansion of commercial activity fell from 62.5 to 54.6. Volumes of orders continued to rise but at a rate of 53.8 rather than the 57.3 recorded in October. Panellists said this increase was due to strong demand from new clients.
The use of sub-contractors fell for the first time in three months to 48.5. Yet availability of sub-contractors fell to 48.1 - the sharpest decline for 32 months. The quality of sub-contracted work fell to 48.0, marking a continued deterioration for 15 consecutive months.
For coverage of previous PMI reports see the link below