"The improved score is really good news but gives reason for cautious optimism however, with the mooted triggering of the formal EU exit process in the first quarter of 2017 likely to be a catalyst for further, potentially deeper, uncertainty in the market.".
- Will Waller, Arcadis
Construction activity in the United Kingdom unexpectedly accelerated last month, according to a private survey published on Tuesday. According to Markit/CIPS, the Construction Purchasing Managers' Index for Britain advanced to 52.3 in September, entering the expansion territory. Back in July, the Construction PMI came in at 49.2 and analysts expected it to fall to 49.0 during September. Britain's construction activity unexpectedly contracted in June, declining to 46.0, its lowest level since June 2009, from May's 51.2 points amid the country's decision to leave the European Union. The Construction PMI data together with Monday's promising Manufacturing PMI showed signs of stabilization in the UK economy after the Brexit vote. New orders rebounded in September, after dropping for four straight months, while commercial construction activity fell for the fourth consecutive month, the longest negative stretch since 2013 although at a slower pace than previous months.
The British Pound was little changed on Tuesday despite the positive data. After the release it was trading at 0.8742 against the Euro, 1.2507 against the Swiss Franc, 1.2783 against the US Dollar and 130.82 against the Japanese.
© Dukascopy Bank SA