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2017.11.0205:56:00UTC+00UK Construction Sector Expands Marginally In October

British construction activity signaled marginal upturn in October, driven by solid rise in residential building work, survey data from IHS Markit showed Thursday.

The IHS Markit/Chartered Institute of Procurement & Supply construction Purchasing Managers' Index rose to 50.8 in October from 48.1 in September. Economists had expected the index to improve to 48.5.

Any reading above 50 indicates expansion, while a score below 50 suggests contraction in the sector.

The slight upturn in October was underpinned by a strong increase in housing activity.

The latest rise in housing activity was faster than in September, but still subdued in comparison to the average for 2017 to date.

At the same time, commercial building activity fell for the fourth straight month in October and civil engineering was the worst performing sub-category.

New orders rose slightly in October after declining in the previous three months.

The index measuring firms' expectations for business activity over the year ahead dropped to a 58-month low in October.

As a result, job creation remained subdued and input buying increased only marginally.

On the price front, input price inflation remained sharp in October, but remained softer than the near six-year peak seen at the start of this year.

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