- Tim Moore, senior economist at survey compiler Markit
The Sterling was still trading in a narrow range against the U.S. Dollar, still holding modest gains following a release of the nation's construction PMI. A day later manufacturing data disappointed markets and the Pound lost some of its value against other major currencies. This time, another pillar of the Britain's economy came practically unchanged from the previous month, therefore the reaction was moderate.
On Wednesday Markit published its second report from the Britain's economy, saying activity in the construction sector remained strong, with the corresponding gauge standing at 62.5 in March, barely changed from 62.6 a month earlier. Analysts expected a figure of 63; however, even despite disappointing figures, the index remained highly above the 50 threshold that separates growth from contraction. The sector account for only 7% of the economy, therefore, markets reacted very slightly. What is more important, optimism among construction companies rocketed to the highest level since January 2007, while businesses hire staff at the fastest pace in four months. The sector is on the mend as record-low interest rates, government incentives are encouraging people to make huge purchases. Moreover, the government announced that it will extend its programme designed to boost people willingness to buy newly built homes until the end of the decade.
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