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The construction sector activity in the UK returned to the expansion territory last month, the latest survey report from Markit Economics showed this Thursday.

The final Purchasing Managers’ Index (PMI) came in at 50.5 in April, up from 49.7 recorded in March and bettered the consensus estimates pointing to a reading of 50.3.

Key Points:

Construction output rises for the first time since January.

Residential work expands at fastest pace for four months.

Civil engineering and commercial activity fall again.

Tim Moore, Associate Director at IHS Markit, which compiles the survey, noted:

“A return to growth would normally be considered a positive month for the UK construction sector, but the weakness outside of house building gives more than a little pause for thought. Commercial activity and civil engineering both remained on a downward path in April as political uncertainty led to delays with spending decisions.”

“Residential work retained its position as the sole driver of growth across the three main segments of construction activity. Survey respondents once again noted that residential projects were buoyed by strong demand for new homes, low mortgages rates and first time buyer incentives.”