UK construction PMI rose to 64.6 points in January, reflecting steaming hot growth. Markit’s purchasing managers’ index for the British construction sector was expected to slide just a bit, from 62.1 to 61.6 points, still reflecting very strong growth. These levels are good news for the pound, but could show that growth is totally concentrated in the construction sector. The score is the highest since August 2007, when it scored 64.8 points – nearly 6.5 years.
GBP/USD suffered badly in recent days, falling from the area of 1.6440 all the way down to 1.6260. It traded just under 1.63 before the release. It is now trading at 1.6336.
GBP/USD reaction:
Yesterday, the manufacturing PMI came out just below expectations. The small miss was enough to extend the sell off sterling, which also lost ground against the euro.
Tomorrow we have the PMI for the largest sector: services. For more on the pound, see the GBP dollar forecast.
