U.K. construction PMI rises to 55.9, vs. expectations for 55.0
(MENAFN- FxPro) U.K. construction sector activity expanded at a faster rate than expected in May, one month after growing at the slowest pace in almost two years, 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 55.9 last month from a reading of 54.2 in April. Economists had expected the index to improve to 55.0 in May.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
Commenting on the report, Tim Moore, senior economist at Markit and author the report, said, "May's survey provides the first sign of a post-election bounce in the U.K. construction sector. With a sustained period of policy uncertainty no longer on the horizon, business confidence surged back to its highest level since early-2006."
GBP/USD was trading at 1.5222 from around 1.5205 ahead of the release of the data, while EUR/GBP was at 0.7204 from 0.7208 earlier.
Meanwhile, European stock markets held on to losses. London's FTSE 100 fell 0.8%, the EURO STOXX 50 lost 0.55%, France's CAC 40 shed 0.6%, while Germany's DAX declined 0.8%.
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