Investing.com – Construction sector activity in the U.K. slowed more-than-expected in January, expanding at the weakest pace in four months, industry data showed on Thursday.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index declined by 1.8 points to a seasonally adjusted 51.4 in January from a reading of 53.2 in December.
Economists had expected the index to ease down by 0.3 points to 52.9 in January.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
January data signaled a thirteenth successive monthly rise in U.K. construction sector output, however, the rate of expansion eased and was modest.
The weaker increase in activity was led by a slowdown in new order growth, with some panelists also noting the completion of existing contracts. Furthermore, employment stagnated.
Despite this, confidence regarding future business activity strengthened to the second-greatest degree in the survey history to reach an eight-month high.
Commenting on the report, chief executive officer at the CIPS David Noble said, “Buoyed by an increase in commercial activity, the continued growth in the construction sector in January was tempered by declines in housing and civil engineering.”
Following the release of that data, the pound turned modestly higher against the U.S. dollar, with GBP/USD easing up 0.04% to trade at 1.5840.
Meanwhile, European stock markets were mixed to higher. The FTSE 100 dipped 0.2%, the EURO STOXX 50 added 0.1%, France’s CAC 40 edged 0.1% higher, while Germany's DAX rose 0.2%.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index declined by 1.8 points to a seasonally adjusted 51.4 in January from a reading of 53.2 in December.
Economists had expected the index to ease down by 0.3 points to 52.9 in January.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
January data signaled a thirteenth successive monthly rise in U.K. construction sector output, however, the rate of expansion eased and was modest.
The weaker increase in activity was led by a slowdown in new order growth, with some panelists also noting the completion of existing contracts. Furthermore, employment stagnated.
Despite this, confidence regarding future business activity strengthened to the second-greatest degree in the survey history to reach an eight-month high.
Commenting on the report, chief executive officer at the CIPS David Noble said, “Buoyed by an increase in commercial activity, the continued growth in the construction sector in January was tempered by declines in housing and civil engineering.”
Following the release of that data, the pound turned modestly higher against the U.S. dollar, with GBP/USD easing up 0.04% to trade at 1.5840.
Meanwhile, European stock markets were mixed to higher. The FTSE 100 dipped 0.2%, the EURO STOXX 50 added 0.1%, France’s CAC 40 edged 0.1% higher, while Germany's DAX rose 0.2%.