Investing.com - U.K. construction sector activity in June expanded at the fast rate since May 2012, easing concerns over the country’s economic outlook, industry data showed on Tuesday.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index rose to a seasonally adjusted 51.0 in June from a reading of 50.8 in May.
Economists had expected the index to improve to 51.1 last month.
Higher output levels were driven by a solid rate of new order growth in June, and this in turn contributed to rising employment levels in the construction sector during the latest survey period.
Commenting on the report, senior economist at Markit Tim Moore said, “The improvement in overall construction output simultaneously raises chances of strong second quarter U.K. GDP growth, and reduces the likelihood of imminent additional policy stimulus from the Bank of England.”
Following the release of that data, the pound was little changed against the U.S. dollar, with GBP/USD easing down 0.01% to trade at 1.5214.
Meanwhile, European stock markets remained lower. London’s FTSE 100 shed 0.4%, the EURO STOXX 50 fell 0.8%, France’s CAC 40 declined 0.8%, while Germany's DAX slumped 0.9%.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index rose to a seasonally adjusted 51.0 in June from a reading of 50.8 in May.
Economists had expected the index to improve to 51.1 last month.
Higher output levels were driven by a solid rate of new order growth in June, and this in turn contributed to rising employment levels in the construction sector during the latest survey period.
Commenting on the report, senior economist at Markit Tim Moore said, “The improvement in overall construction output simultaneously raises chances of strong second quarter U.K. GDP growth, and reduces the likelihood of imminent additional policy stimulus from the Bank of England.”
Following the release of that data, the pound was little changed against the U.S. dollar, with GBP/USD easing down 0.01% to trade at 1.5214.
Meanwhile, European stock markets remained lower. London’s FTSE 100 shed 0.4%, the EURO STOXX 50 fell 0.8%, France’s CAC 40 declined 0.8%, while Germany's DAX slumped 0.9%.