British construction output rises at slowest pace in 6 months

British construction output rose during April, but the rate of expansion was the weakest since October 2013, Markit Economics (Markit) reported on Friday. British Purchasing Managers' Index (PMI) dipped from 62.5 to 60.8 in April, said Markit, with the overall rate of expansion easing since March. Despite this, British construction companies continued to record strong output rises during April, with all three broad categories of activity registering robust growth. Residential construction was the best performing area, and the rate of expansion in April remained one of the fastest seen in the past ten years, said the London-based survey compiler. Meanwhile, commercial activity increased sharply in April, while the growth of civil engineering activity eased to its slowest since September 2013, said Markit. The construction sector accounts for around 6.3 percent of the gross domestic product (GDP), according to the Office of National Statistic (ONS). "Construction growth has started to moderate from the rapid pace seen over the winter, but strong rises in new work and payroll numbers provide ample optimism that output will expand strongly over the course of 2014," said Tim Moore, senior economist at Markit. "Better economic conditions, a surge in house building, improved access to finance and greater investment spending are all important tailwinds for UK construction growth this year," he added. David Noble, CEO of the Chartered Institute of Purchasing and Supply, said, "Reflecting the fast pace of growth filtering through the supply chain, vendor performance in April continued to deteriorate, typified by shortages of capacity, low stocks and worsening lead times." "Beyond this, the easing of cost inflation this month was acknowledged to have brought some relief to the industry," he stated.