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.