December data signalled a solid rise in UK construction sector output, extending the period of sustained expansion to 12 months. Growth of activity was supported by an increase in new business, which in turn led to a further rise in employment. However, confidence over future business prospects remained relatively muted.

The seasonally adjusted Markit/CIPS Construction Purchasing Managers' Index (PMI) posted 53.2 in November. The latest reading signalled growth of UK construction sector activity that was slightly stronger than in the previous survey period. Nonetheless, the latest increase in output remained below the series average.

For the first time in nine month, all three broad construction categories monitored registered rises in activity. The fastest growth was in civil engineering, where trends in output have been relatively volatile over recent months. Residential construction increased for a second month running, while the expansion in commercial activity eased to the slowest since December 2010.

There was a general rise in opportunities and successful bids and robust growth in new business. There was a modest rise in UK construction sector employment, while usage of sub-constractors declined.

UK construction companies reported a further increase in purchasing activity in December, extending the period of sustained growth to one year. Input prices faced by construction companies in the UK also continued to rise substantially during the month.

Sarah Bingham, Economist at Markit and author of the UK Construction PMI, said: "PMI data signalled a positive end to 2011 for the UK construction sector."