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Construction rebounds in January

Published:  03 February, 2011

LONDON: Construction activity returned to growth in January, helped by better weather and a rise in new business, the monthly Markit/CIPS purchasing managers' index showed today.

The PMI Index rose to 53.7 in January, from December's reading of 49.1.

This had been the first fall in 10 months and was attributed to the unexpectedly severe start to the winter. In addition, all three construction sub-sectors reported an increase in activity in January, for the first time since August, Markit said.

"Companies reported that January's improvement in part reflected a rebound from harsh weather in December, which had contributed to the first fall in activity since February of last year," Markit added.

"Looking at the trend in the data over the past two months as a whole, the picture is one of very modest growth, well below the strong pace seen in the first half of last year."

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