The headline seasonally adjusted IHS Markit/CIPS UK Construction PMI Total Activity Index beat market expectations handily, jumping to 55.3 in June from 28.9 in May. This signals a strong increase in total construction output. the latest reading signalled the steepest pace of expansion since July 2018. According to the report, the increased levels of business activity were directly linked to the reopening of the UK construction supply chain following stoppages and business closures during the early stages of the coronavirus (COVID-19) pandemic.
- Fastest rise in construction activity for nearly two years
- New orders stabilise in June, but employment falls again
- Lack of materials availability pushes up input costs
The GBPUSD pair has been assailing the 1.25 mark following the news, but so far has yet to close a candle on the 1 hour chart above that mark. Though another push higher is happening in this hour. As of this writing Cable is trading at 1.2507.
The UK Markit Construction PMI doesn’t impact the UK GDP as much as the manufacturing PMI, so the boost maybe temporary. This move upward for GBPUSD is also fueled by a weaker greenback. So far today, the USD Index has fallen -0.3 to 96.881.