Investing.com - Construction sector activity in the U.K. expanded for the first time in seven months in May, 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 50.8 in May from a reading of 49.4 in April.
Economists had expected the index to improve to 49.6 last month.
The index, which measures overall output in the construction sector, had registered below the 50.0 no-change value in each of the six months leading up to May.
The latest reading was below the 50.0 no-change mark for the sixth month running and much weaker than the series average of 54.0.
Nonetheless, the latest reading still indicated only a marginal pace of expansion and the index remained below its long-run series average of 53.9.
Commenting on the report, senior economist at Markit Tim Moore said, “While the latest survey provides some hope that rising construction output will support UK GDP in the second quarter, the sector remains unlikely to contribute positively to labor market conditions.”
Following the release of that data, the pound trimmed losses to trade little changed against the U.S. dollar, with GBP/USD dipping 0.03% to trade at 1.5314.
Meanwhile, European stock markets remained higher. London’s FTSE 100 added 0.65%, the EURO STOXX 50 rose 0.7%, France’s CAC 40 advanced 0.7%, while Germany's DAX tacked on 0.7%.
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 50.8 in May from a reading of 49.4 in April.
Economists had expected the index to improve to 49.6 last month.
The index, which measures overall output in the construction sector, had registered below the 50.0 no-change value in each of the six months leading up to May.
The latest reading was below the 50.0 no-change mark for the sixth month running and much weaker than the series average of 54.0.
Nonetheless, the latest reading still indicated only a marginal pace of expansion and the index remained below its long-run series average of 53.9.
Commenting on the report, senior economist at Markit Tim Moore said, “While the latest survey provides some hope that rising construction output will support UK GDP in the second quarter, the sector remains unlikely to contribute positively to labor market conditions.”
Following the release of that data, the pound trimmed losses to trade little changed against the U.S. dollar, with GBP/USD dipping 0.03% to trade at 1.5314.
Meanwhile, European stock markets remained higher. London’s FTSE 100 added 0.65%, the EURO STOXX 50 rose 0.7%, France’s CAC 40 advanced 0.7%, while Germany's DAX tacked on 0.7%.