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Boost in construction sector confidence

Construction bosses are more confident about the coming year than they have been for the past eight months, according to the latest Markit purchasing index for construction.

The survey fell to 51.4 for January from 53.3 in December, any number over 50 indicates expansion rather than contraction. It has restored confidence into the sector with bosses becoming more positive about the rest of 2012.

Manufacturing output also saw an unexpected rise as the index for the sector jumped to 52.1, its highest level since May and has made fears of a recession subside for the time being.

Following the results, the sub-index for business expectation jumped from 57.6 to 66.2 highlighting the renewed optimism in the industry.

Sarah Bingham, an economist at Markit, said: "2012 started positively for the UK construction sector, with further output growth recorded. However, at a four-month low, the expansion was modest, reflecting a weaker rise in the volume of new business received compared with December."ADNFCR-1898-ID-801282469-ADNFCR

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