UK construction industry gathers pace

The UK's construction industry expanded at its fastest pace in 16 months last month as confidence in the sector hit a nine-month high.

The Chartered Institute of Purchasing and Supply (CIPS) revealed today (Tuesday) in its purchasing managers' index that the sector rose to 56.3 last month from 55.9 in July, the third successive monthly increase and the highest number since April 2002.

The new orders index came in at 59.2, down slightly from July's seven-month high of 59.1. The confidence index jumped to 77.2, the highest since last November.

Robust growth in the construction sector come on the top of other data showing the UK economy recovering from the global downturn.

The average price of construction materials rose again in August but the rate of inflation eased. The index fell to 53.7 from 55.2 in July, the lowest since January 1999 and the fifth drop in a row.

The rate of employment in the sector rose with the index up to 53.7 in August from 53.5 in July. That represents the fastest pace of jobs growth since last November.