The convergence of the UK economy continues with another slide in the construction PMI: to 59.4 points. This is below expectations and comes one day after manufacturing PMI ticked up. While this is a disappointment, a figure of nearly 60 points still reflects very strong growth.
GBP/USD ticks down to 1.57, still higher than the lows seen last week.
Markit’s purchasing managers’ index for the construction sector was expected to tick down from 61.4 in October to 61.1 points in November. The construction sector stood out in this recovery cycle, leading the pack.
GBP/USD traded around 1.5720 before the publication, slightly off the highs it reached earlier.
Yesterday, manufacturing PMI came out marginally better than expected. The most important PMI comes tomorrow for the services sector, the UK’s largest. A broadening of the recovery from construction towards manufacturing is a positive.
More: GBP/USD: Stronger Recovery Looming: Levels & Targets – JP Morgan
For more about GBP, see the pound dollar prediction.
