On Thursday, Construction PMI figures were released. The seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index posted 51.2 in May, down from 52.0 in April and only slightly above the critical 50.0 no-change mark. The latest reading signalled the weakest overall rise in business activity for almost three years. All three broad areas of construction activity were stuck in a low gear during May. Residential building work increased at one of the weakest rates seen since early-2013, while growth of commercial activity was the slowest for nearly three years. Civil engineering stagnated in May, which made it the worst performing sub-category of activity for the second month running.
Friday was marked by UK Services PMI data. The Business Activity Index rose to 53.5 in May, from April’s 38-month low of 52.3, indicating a slightly stronger rate of growth in UK services output. Analysts were expecting smaller increase to 52.5. Activity has risen every month since January 2013. That said, growth remained weak both in the context of the current upturn and the historic survey trend. The index has averaged 55.2 since it was first compiled in July 1996.
This week markets will be looking at:
Industrial Production (Wednesday 10:30)
Last modified on Friday, 03 June 2016
