Latest data released by Markit/CIPS - 2 July 2019
- Prior 48.6
That's a significant miss and is the weakest print since April 2009. Of note, the UK home building sub-components turns negative for the first time in 17 months as Markit notes that the Brexit crisis has put companies off long-term investment. Adding that:
"Worrying signals from the survey's forward-looking indicators make it almost impossible to sugarcoat the construction PMI data in June. In particular, new orders dropped to the largest extent for just over 10 years while demand for construction products and materials fell at the sharpest pace sine the start of 2010".
That is seeing cable be dragged to a fresh session low of 1.2616 currently with 10-year gilt yields also slumping to their lowest level since October 2016, down 3 bps on the day to 0.782%. This won't do the pound any favours as it will continue to put into perspective why the BOE should raise rates amid continued weakness in economic conditions.
