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Construction sector shows strongest growth since March


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Old 04-01-2017, 12:14
James_Orton
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The Markit/CIPS purchasing managers' index (PMI) rose to 54.2 in December, its strongest since March and well ahead of a forecast 52.8 - the same as the November reading.
More fantastic news on top of manufacturing yesterday.

It looks like our economy is well and truly expanding.

It makes you wonder why economists are expecting things to be worse this year. Seems to be they may be wrong again!
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Old 04-01-2017, 12:29
Slojo
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More fantastic news on top of manufacturing yesterday.

It looks like our economy is well and truly expanding.

It makes you wonder why economists are expecting things to be worse this year. Seems to be they may be wrong again!
Ask 100 economists a question and you will get 100 different answers
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Old 04-01-2017, 13:09
sangreal
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http://www.tradingeconomics.com/unit...ruction-output

It was higher at the very beginning of the year than at the end
(whereas March was in negative growth, according to that graph).

Click on the 5Y & 10Y buttons etc.

Again (like with manufacturing), 2014 was relatively ok,
but overall, growth in construction has been pretty poor for the past 6 years.

Also note how output was highest at the beginning of 2010 and has never reached that height again since...

...which has nothing to do with Brexit / EU, and everything to do with our own government.

______________________________________

Bonus link: A report on today's survey results
http://www.bbc.co.uk/news/business-38505221

However, the sector "continued to experience intense cost pressures".

Markit said that the increase in costs seen last month was the biggest since April 2011.

This came as suppliers passed on the higher costs of imported raw materials. The sharp fall in the value of the pound following last year's Brexit vote has made imported goods more expensive.

oops...
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Old 04-01-2017, 14:48
James_Orton
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http://www.tradingeconomics.com/unit...ruction-output

It was higher at the very beginning of the year than at the end
(whereas March was in negative growth, according to that graph).

Click on the 5Y & 10Y buttons etc.

Again (like with manufacturing), 2014 was relatively ok,
but overall, growth in construction has been pretty poor for the past 6 years.

Also note how output was highest at the beginning of 2010 and has never reached that height again since...

...which has nothing to do with Brexit / EU, and everything to do with our own government.

______________________________________

Bonus link: A report on today's survey results
http://www.bbc.co.uk/news/business-38505221




oops...
There certainly will be cost pressures for non UK components but with most things some will be foreign and some UK.

However growth is growth. We've had manufacturing showing strong growth and now construction. I would hope retail and services do the same.
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Old 04-01-2017, 15:10
sangreal
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There certainly will be cost pressures for non UK components but with most things some will be foreign and some UK.

However growth is growth. We've had manufacturing showing strong growth and now construction. I would hope retail and services do the same.

Strong? I wouldn't call it strong.
It's growth, but could/should be a lot stronger (e.g. at 2002 & 2010 levels).

Retail & services growth is what's been keeping the UK economy alive in recent years, since that sector now makes up ~80% of our GDP.
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Old 04-01-2017, 20:17
James_Orton
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Strong? I wouldn't call it strong.
It's growth, but could/should be a lot stronger (e.g. at 2002 & 2010 levels).

Retail & services growth is what's been keeping the UK economy alive in recent years, since that sector now makes up ~80% of our GDP.
It's very good growth. Hence why economists and experts are calling it strong growth.
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Old 04-01-2017, 21:47
sangreal
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It's very good growth. Hence why economists and experts are calling it strong growth.

Which experts? The same ones who slashed the construction growth forecast only a couple of weeks ago?
http://www.theconstructionindex.co.u...recast-slashed

The same ones who in November said it was at its weakest in four years?
http://www.bbc.co.uk/news/business-37947922

I'll wait till I see the final figures appear on the graph for Nov & Dec 2016
http://www.tradingeconomics.com/unit...ruction-output

The 5Y graph shows just how comparatively low it's been this year.
Not as bad as 2012-13, but still hovering just above 0, compared to peaks of ~20 inbetween 2001-2010 (see "MAX" graph).
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