UK construction activity grows but costs hit five-year high

Soaring costs indicate pound's fall since Brexit vote is increasing import costs for British businesses

British construction firms continued to rebound from their post-referendum soft patch last month but reported the steepest rise in prices for more than five years.

In the latest sign that the pound's sharp fall since the Brexit vote is raising import costs for UK businesses, the poll of construction firms (pdf) showed they reported a "steep and accelerated rise" in what they were paying for building materials in November. That put the rate of inflation in the sector at the highest since April 2011, according to the survey's compilers IHS Markit.

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