Many economists expected the purchasing managers' surveys to moderate in the fourth quarter following their very strong third quarter but they remain very strong. We await the service sector number but both manufacturing and construction has surprised on the upside ths month.
This was this morning's contruction PMI: "November data pointed to another strong upturn in the UK construction sector, with output and employment both rising at the sharpest rate since August 2007. Growth of business activity was broad based across the three main areas of construction, with residential building again the best performing category. Higher levels of output were supported by the joint-fastest expansion of incoming new work since September 2007.
"Adjusted for seasonal factors, the Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI®) registered 62.6 in November, up sharply from 59.4 in October."
It followed yesterday's buoyant manufacturing reading: "November saw the already solid upturn in the UK manufacturing sector gain further momentum. At 58.4, from an upwardly revised reading of 56.5 in October, the seasonally adjusted Markit/CIPS Purchasing Manager’s Index® (PMI®) rose to its highest level since February 2011. Moreover, the PMI has signalled expansion for eight months running.
"The improved performance of the sector largely reflected substantial increases in both manufacturing production and new orders, with rates of growth in both at, or near to, 19-year highs."
Good, and surprisingly strong, news.