3 October 2006, 13:29  UK Sept construction PMI 53.6

Construction activity in the UK, which accounts for about 6 pct of GDP, slowed from the five-month high reached in August but continued to enjoy solid growth as employment levels reached a six-month high, a survey showed. In its monthly survey of the sector, the Chartered Institute of Purchasing and Supply said its headline purchasing managers index dropped to 53.6 from 54.5 in August. A reading above 50 indicates expansion in the sector, while below indicates contraction. "In September, we saw continuing growth in UK construction activity, with increased work on commercial projects being a key driver," said Roy Ayliffe, director of professional practice at CIPS. Despite a weakening on August's performance, purchasing managers remain optimistic about the future, he said, adding that many expect construction activity to rise in the next year. CIPS said increasing confidence over future growth was reflected by trends in purchasing and employment in September, with input buying rising at its fastest pace since March, while growth of the UK construction workforce reached a six-month high.

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