Britain's construction sector is moving "closer to stabilisation" and has bounced back admirably from a horrible month in July, according to IHS Markit.
The latest PMI release for the construction sector came in at 49.2, substantially above July's 45.9 reading, and also much higher than the 46.1 that had been forecast by economists in the run up to the release.
The purchasing managers index (PMI) figures from IHS Markit are given as a number between 0 and 100. Anything above 50 signals growth, while anything below means a contraction in activity — so the higher the number is, the better things look for the UK.
Construction PMIs collapsed in the immediate aftermath of the UK's vote to leave the European Union, but as the dust has settled after the vote, the ship has steadied somewhat.
Tim Moore, a senior economist at Markit, said: "The downturn in UK construction activity has eased considerably since July, primarily helped by a much slower decline in commercial building. Construction firms cited a nascent recovery in client confidence since the EU referendum result and a relatively steady flow of invitations to tender in August.
"However, the latest survey indicates only a partial move towards stabilisation, rather than a return to business as usual across the construction sector. There were still widespread reports that Brexit uncertainty had dampened demand and slowed progress on planned developments, especially in relation to large projects."
Britain's construction sector has been the subject of much worry in recent years, and those woes have intensified in 2016.
