- Howard Archer from IHS Economics
Activity in the UK construction sector dropped to the lowest level in seven months in November, hurt by the weakest growth in housing activity since mid-2013, suggesting the sector will continue to weigh on Britain's recovery in the last quarter. The Markit/CIPS UK construction PMI plunged to 55.3 from 58.8 in October. While the reading remained firmly above the 50 level that indicates an expansion, it was the slowest pace of growth since April and below economists' predictions for a slight decline to 58.5. The Pound lost 0.28% versus the US Dollar to trade at 1.5038, down from 1.5065 before the data release.
Output in the construction sector was expected to be the largest downward drag on the overall UK economy in the third quarter, plunging 2.2%, the largest decrease since 2012. Markit's earlier reports showed that business activity in the manufacturing sector slowed in November from the highest level in 16 months, as output and new orders rose at a slower rate. Investors now turn their attention to the services PMI due later in the day. Britain's biggest contributor to the total economic output is expected to climb to 55 in November from October's 54.9.
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