The construction sector in UK surged in June while housing activity surged and employment shot up at a record pace.
Financial research firm Markit Economics reported that its Purchasing Managers’ Index surged to 62.6 in June from 60 a month earlier. Economists surveyed by Bloomberg News had expected the measure to drop to 59.8. The reading has stood above the 50 mark that shows expansion for over one year.
British homebuilders have reported increasing profit and sales in 2014 as demand for property surges while mortgage uptake is increasing. The housing sector report, along with another one on Tuesday that indicated that manufacturing activity rose the most in seven months.
“Construction companies started the summer with another surge in house building and commercial activity,” Tim Moore, a London-based economist at Markit told Bloomberg.
The gauge of housing activity accelerated to 66.6 in June from May’s reading of 62.7, reported Markit Economics. The reading is the highest since the measure touched 67.3 in January, the highest level in over a decade. Building of commercial property also rose the most in five months.
Markit also reported that the pace of hiring surged in June, saying the number of newly-hired workers grew by the fastest pace since the research started in 1997.
A separate report showed that private payrolls in the U.S. surged the most in 1 ½ years as businesses hired more buoyed by confidence that the economy was emerging from its winter-induced slump in the first quarter.
Private businesses employed 281,000 more workers, compared to 179,000 in May, reported payrolls processing firm ADP on Wednesday. Construction industry hired 36,000 workers, the most since February 2006 while the manufacturing sector employed 12,000 individuals. Professional business firms added 77,000 new workers into their payrolls, the highest number since November 2012. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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