UK construction growth disappoints while FTSE 100 slips despite positive Next update
After a subpar PMI figure from the manufacturing industry yesterday that slipped from four-year highs, today’s construction PMI print followed suit, missing forecasts coming out at 52.2.
While both sets of PMIs were above the crucial 50 level showing expansion in the sector, there was still doubt that stellar figures would be reached once again. Today’s figure is weighed down by the moderate downturn in commercial projects combined with stagnated expansion in the home building sector. However, investors are still forecasting an increase in construction activity throughout 2018, which fuels views that the UK economy saw an unexpected slowdown at the end of 2017 and is expected to get back on track shortly.
Tomorrow services PMI is being released, which is the largest sector in the UK and investors along with the Bank of England will be looking closely to see if this is a turning point for the UK economy and whether or not 2018 will be as prosperous as many think.
Balraj Sroya, quoted in the Guardian