Investing.com - U.K. construction sector activity expanded at the slowest pace in seven months in November, underlining concerns over the health of the economy, 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 declined to a seasonally adjusted 55.3 last month from a reading of 58.8 in October. Economists had expected the index to fall to 58.2 in November.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
Growth momentum softened across the U.K. construction sector in November, with output, new business and employment all rising at slower rates than in the previous month.
Residential building activity increased at the weakest pace since June 2013, while civil engineering activity rose at the slowest rate for six months and was the worst performing sub-category.
Commenting on the report, Tim Moore, senior economist at Markit and author the report, said, “The U.K. construction recovery is down but not out, according to November’s survey data."
GBP/USD fell to 1.5034 from around 1.5063 ahead of the release of the data, while EUR/GBP was at 0.7067 from 0.7054 earlier.
Meanwhile, European stock markets were modestly higher. London’s FTSE 100 inched up 0.3%, the EURO STOXX 50 tacked on 0.1%, France's CAC 40 rose 0.1%, while Germany's DAX added 0.1%.