PMI data indicates significant economic growth

The UK economy continued its fast pace of growth in December, according to the latest purchasing managers’ index (PMI) data.

The PMI reading for the construction sector dropped from 62.6 in November to 62.1 in December, according to data from Market/Cips.

However, the November data had been a 72-month high and, with any score of more than 50 indicating an expansion of the sector, the data showed December was still a strong month for construction.

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The outlook for 2014 was also strong, as 57 per cent of respondents to the PMI survey said they expected growth for their firms, with only 10 per cent anticipating a decline.

House price data out today from Nationwide Building Society also showed that house prices rose in December at the fastest pace for more than four years.

The research found that average house prices rose by 1.4 per cent in December, contributing to an 8.4 per cent rise through 2013, though prices are still on average 5 per cent lower than their peak in 2007.

The data today comes after the manufacturing PMI out yesterday also showed a slight decline from November but still very strong growth.

The manufacturing PMI reading in December was 57.3, down slightly from November’s 58.1, though that had been a 33-month high.

With the PMI data for the UK services sector due out on January 6, the data so far points towards very strong economic growth for the UK in the final quarter of 2013.