A small disappointment in the UK construction sector: growth is somewhat slower than expected with 61.4 points, lower than 63.5 points expected. Nevertheless, this represents strong growth. This is the lowest since May this year.
GBP/USD is now under 1.60, after battling this line.
The UK construction PMI was expected to slide to 63.5 points after a super strong 64.2 points in September. All in all, slower construction growth and faster manufacturing growth could be a good thing: a more balanced economy that is firing on more engines.
GBP/USD traded very close to 1.60 just before the publication.
Yesterday, manufacturing PMI beat expectations. This is the weakest link in the UK economy. Tomorrow, we get the services purchasing managers’ indicator. The services sector is the UK’s largest.
For more, see the British Pound forecast.
The Bank of England meets on Thursday and is not expected to change monetary policy at this points. A rate hike is likely in the spring.
