UK construction sector’s expansion eases in June

UK construction sector’s expansion eases in June

U.K. construction sector’s expansion eased last month, raising doubts whether the growth would accelerate in the second quarter.

Construction Purchasing Managers’ Index scored 54.8 in June, down from an 18-month high of 56.0 in May. Analysts had predicted a retreat to 55.0.

“Survey respondents commented on renewed caution among clients, in response to heightened political and economic uncertainty. Fragile business sentiment led to delayed decision-making on large projects and greater concern about the outlook for workloads during the next 12 months,” said Markit’s analyst Tim Moore.

“While construction firms remain upbeat overall about their near-term growth prospects, the degree of confidence fell to its lowest so far this year,” he revealed.

Manufacturing PMI released yesterday signaled a drop to 54.3 in June from a revised of 56.3 in May.

As of 08:41 GMT, the pound traded at its lowest level in six days against its U.S. counterpart at 1.2917 from the session’s open at 1.2946.

Earlier today, MPC members Ian McCafferty and Gertjan Vlieghe showed divergent point of views regarding interest rates, as the former said it would be “prudent” to start raising rates while the later referred that raising rates earlier would be worse than hiking too late.

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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