GROWTH of UK construction sector activity accelerated in February to its fastest pace since October, a survey has revealed.
The survey, published by the Chartered Institute of Purchasing and Supply, showed a slight slowdown in the rate of hiring by the sector, although it remained strong by historical standards.
CIPS noted that strong demand for construction materials, alongside ongoing shortages of stock at suppliers, had contributed to a steep and accelerated rise in input prices in February.
It also observed that rates charged by sub-contractors had increased in February at the most marked pace since the survey began in April 1997.
CIPS's purchasing managers' index for construction, which measures activity, rose from 59.1 in January to 60.1 in February on a seasonally-adjusted basis, moving further above the level of 50 deemed to separate expansion from contraction.
The survey showed acceleration in the rates of growth in all three sub-sectors surveyed by CIPS, which are housebuilding, commercial property construction and civil engineering.
Growth was strongest in the housebuilding sub-sector.
However, CIPS's employment index for UK construction eased from 59.2 in January to 58.4 in February.
Tim Moore, senior economist at survey compiler Markit and author of the construction report, said: "The latest survey highlights renewed vitality within the UK construction sector, as output growth picked up further from the soft patch seen at the end of 2014. Housing, commercial and civil engineering activity all expanded at the quickest rates since last October, helped by sharp rises in new business volumes and an improving economic backdrop. Stronger short-term growth momentum in February was matched by positive sentiment towards the year-ahead business outlook.
"However, some construction companies noted that the uncertain General Election outcome could prove a temporary bump in the road for new work, as some clients had sought to delay spending decisions."
He added: "Tighter labour market conditions also helped push up operating costs, as highlighted by the fastest rise in sub-contractor charges since the survey began almost 18 years ago."
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