THE construction sector expanded further last month, despite a slowdown in house price growth in the South-East of England, industry data showed.
The rate of construction in the UK slowed slightly from a two-year high in November, but still registered its 59th consecutive month of growth, the Chartered Institute of Purchasing and Supply (CIPS) said.
The CIPS purchasing managers' index registered 59.2 last month - significantly higher than the 50 threshold that denotes no change.
The construction sector benefited from returning confidence in manufacturing, which was investing more in factory extensions, warehouses and supply sites.
Roy Ayliffe, CIPS director of professional practice, said a slowdown in the rate of growth in housing activity was largely offset by more activity in the commercial construction sector.
The housing activity index was 63.7 last month from 69.8 in November, as the effects of a rise in interest rates to 3.75 per cent filtered through to the market.
The slowdown was also due to lower house price growth in the South East - the main engine of housing activity.
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