Forexpros – Construction sector activity in the U.K. contracted for the first since December 2009 in June, as output and new orders both fell, industry data showed on Tuesday.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers’ index fell by 6.2 points to a seasonally adjusted 48.2 in June from a reading of 54.4 in May.
Economists had expected the index to fall by 1.4 points to 53.0 in June.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction. The index hit a 21-month high of 56.7 in March.
Commenting on the report, senior economist at Markit Tim Moore said, “A drop in business activity was perhaps inevitable given that the month started with an additional bank holiday and ended with severe weather across large parts of the U.K.”
Following the release of that data, the pound remained mildly lower against the U.S. dollar, with GBP/USD dipping 0.07% to trade at 1.5681.
Meanwhile, European stock markets held on to modest gains. London’s FTSE 100 eased up 0.15%, the EURO STOXX 50 added 0.25%, France’s CAC 40 advanced 0.15%, while Germany’s DAX rose 0.4%.
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