UK Markit/CIPS Nov construction PMI 2 Dec
- 52.6 prev
- cost inflation the highest for over 5 years
Better than expected data but don't expect too much of a rally right now with some inherent GBPJPY sell interest still prevailing as per my preview. The construction sector not a great contributor to UK GDP either but hey, always welcome to see an uptick.
Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI:
"UK construction companies experienced a steady recovery in business activity during November, which continues the rebound from the downturn seen over the third quarter of 2016.
The brighter picture reflected another solid contribution from residential building and renewed growth in commercial work, which some companies linked to a resumption of projects that had been delayed after the Brexit vote. "November's survey data revealed the strongest rise in overall new business volumes since March.
However, lingering economic uncertainty and subdued investor sentiment meant that optimism towards the year-ahead outlook remained close to its lowest since early-2013. "Input cost inflation accelerated to its fastest for five-and-a-half years, driven by sharply rising imported raw material prices.
A number of firms cited uncertainty related to supplier price hikes as an emerging threat to the construction sector, with survey respondents commenting on difficulties forecasting project costs against a backdrop of rapidly changing inflationary pressures."
Full Markit report here
GBPUSD 1.2613 EURGBP 0.8450 barely moved.
