The tone of the UK construction sector remains extremely buoyant. Business expectations rose last month. There are still signs of excess demand and so construction output (recall that this PMI is an output or activity index) should still be growing very strongly.
"We expect the PMI to increase from 60.1 to 60.8. We have to admit that this forecast is highly uncertain, though", Says Societe Generale
The PMI already stands at a highly elevated level and it is very difficult to be precise about short term movements in the index, especially when it is so divorced from the path of actual construction output which peaked in July of last year and has been falling fairly steadily ever since.
