UK PMI Construction comes in at 56.7 versus 54.3 expected -> Building expands at fastest pace in 21 months -> GBP/USD gives slight gains following report
The UK purchasing managers’ index (PMI) for construction, which measures market sentiment in the construction sector, came in at 56.7 for March. It is the fastest expanding construction result in 21 months and beat analysts’ expectations by 2.4 points.
The PMI is based on a survey of purchasing managers conducted by Markit Economics Ltd. and the Chartered Institute of Purchasing and Supply. Any result above 50 is considered expansion; and February’s PMI construction came in at 54.3.
GBP/USD reaction was relatively muted as focus remained elsewhere, and the pair now sits with a slight daily gain. However, the rate is still far from yesterday’s high of 1.6060. GBP/JPY saw a small jump of ten points following the report.