(Bloomberg) -- Britain’s construction industry expanded at its fastest pace in 14 months in April, adding to confidence the economy is rebounding from a recession.

The construction purchasing managers’ index jumped to 53 in April, up from 50.2 the previous month, S&P Global said Tuesday. It was well above economists’ expectations of 50.4, with any score above 50 signaling growth.

It added to signs that the economy kept expanding in the second quarter after a shallow downturn in the final months of last year. Official data on Friday is expected to show that the gross domestic product returned to growth at the start of 2024, with forecasters predicting a 0.4% gain in the first quarter.

“Demand was boosted by greater confidence regarding the broader UK economic outlook,” said Tim Moore, economics director at S&P Global Market Intelligence.

The sector has been one of the worst affected by the surge in interest rates, leading to a sharp slowdown in housebuilding and a wave of bankruptcies. 

While the housebuilding sector still struggled in contraction territory, it was more than offset by strength in civil engineering and commercial building, which increased for the first time since August. 

S&P said new business volumes rose for the third straight month and nearly half of firms expected a increase in output in the next 12 months. However, it added that firms reduced staff levels slightly despite hopes for continued growth.

Peter Arnold, EY UK chief economist, said the survey showed that “the economic recovery is becoming more established and is broadening.”

“With increasing evidence that both activity and prices have passed their troughs, housebuilding should start to pick up soon,” he added.

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