Investing.com – Britain's construction sector unexpectedly contracted in December, industry data showed on Wednesday.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index fell to a seasonally adjusted 49.1 in December, after rising to 51.8 in November.
Economists had expected the index to decline to 51.2 in December.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
According to the data, U.K. construction activity contracted in December due to poor weather conditions, ending a nine-month period of growth.
Commenting on the report, chief executive officer at the CIPS David Noble said, “A disappointing end to the year for the U.K. Construction sector, as the PMI drops into contraction territory again. The overall picture for 2011 is also likely to stay subdued.”
He added, “A major worry is the situation in the housing market, which suffered its steepest decline in activity for 20 months.”
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD falling 0.16% to hit 1.5558.
Meanwhile, European stock markets were sharply lower. The FTSE 100 shed 0.36%, the EURO STOXX 50 tumbled 1.18%, France’s CAC 40 slumped 0.98%, and Germany's DAX was down 1.23%.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index fell to a seasonally adjusted 49.1 in December, after rising to 51.8 in November.
Economists had expected the index to decline to 51.2 in December.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
According to the data, U.K. construction activity contracted in December due to poor weather conditions, ending a nine-month period of growth.
Commenting on the report, chief executive officer at the CIPS David Noble said, “A disappointing end to the year for the U.K. Construction sector, as the PMI drops into contraction territory again. The overall picture for 2011 is also likely to stay subdued.”
He added, “A major worry is the situation in the housing market, which suffered its steepest decline in activity for 20 months.”
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD falling 0.16% to hit 1.5558.
Meanwhile, European stock markets were sharply lower. The FTSE 100 shed 0.36%, the EURO STOXX 50 tumbled 1.18%, France’s CAC 40 slumped 0.98%, and Germany's DAX was down 1.23%.