© Reuters. A normal view of the monetary district of London is seen in London

By David Milliken

LONDON (Reuters) – Britain’s development sector misplaced momentum in October however suffered lower than the a lot of the coronavirus-hit economic system because of a buoyant housing market, a enterprise survey confirmed on Thursday.

The IHS Markit/CIPS Buying Managers’ Index for the development sector dropped to 53.1 in October from September’s 56.8, an even bigger drop than the decline to 55.0 which economists had forecast in a Reuters ballot, and its lowest since Might.

Nevertheless, in contrast to figures launched on Wednesday for the a lot bigger companies sector, the gauge remained nicely above the 50 degree which separates development from contraction.

“The development sector was a shiny spot in an in any other case gloomy month for the UK economic system throughout October,” IHS Markit economist Tim Moore mentioned.

Home-building was the largest contributor to development, reflecting a increase in demand for the reason that finish of lockdown, helped by a short lived lower in property taxes which has seen lenders approve the very best variety of mortgages since 2007.

New orders within the sector, which makes up about 6% of Britain’s economic system, rose by essentially the most in 5 years.

The development trade can also be exempt from the four-week lockdown which began in England on Thursday — though corporations final month have been involved concerning the potential knock-on results on demand from rising COVID-19 circumstances.

“Survey respondents extensively commented on renewed financial uncertainty and considerations concerning the sustainability of the restoration as pent-up demand begins to wane,” Moore mentioned.

The civil engineering sector continued to report steep declines in exercise, whereas development in business exercise was pretty muted.

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