New figures have revealed the UK's construction sector expanded slightly in November compared with the previous month.

The seasonally adjusted Markit/CIPS UK Construction Purchasing Managers' Index (PMI) posted 52.8 in November, up slightly from 52.6 in October.

However, while this signals an expansion of total business activity for the third month running, respondents reported a "steep and accelerated" rise in cost burdens.

In November, the rate of inflation was the fastest for just over five-and-a-half years, linked very much to price rises by suppliers in response to the exchange rate depreciation.

Elsewhere, purchasing activity increased at the fastest pace since the start of this year, while housebuilding remained the best performing category in the industry. Civil engineering was the weakest sector.


David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said the sector was on a "firmer footing this month" compared with previous months, resulting in more stability following the uncertainty caused by Brexit.

He continued: "Purchasing activity grew at its fastest pace since the beginning of the year as stronger workflows and tenders materialising into actual projects prompted increased levels of stock building. This resulted in a sluggish response from suppliers, with the fastest lengthening of delivery times since June, as pressure on capacity and low stocks impacted on demand.

"Once again residential activity led the way, though at softer rates than those seen in October and at a more diminished rate than the survey's long-range norm. Though this positive growth will provide some relief for the economy, continuing cost pressures will be a worry for the sector in the coming months.

"As commentators warn about more inflationary impacts next year, the sector will be concerned that decisions from policymakers must ensure these effects are minimalised so that growth is maintained."

(LM/JP)