The British pound has been plagued with bad news this week. Not only did consumer confidence plunge and activity in the manufacturing sector contract even further, but construction sector PMI fell from 43.9 to 38.8, the lowest level since the survey began in April 1997.
The housing market has long been the Achilles heel of the UK economy and this latest number tells us that there is no respite in sight. Service sector PMI is due for release tomorrow and if that deteriorates further, the UK economy as a whole may be at risk of falling into a recession.