UK Markit/CIPS construction PMI data now out 2 Nov

  • 48.1 prev
  • Marginal upturn in construction output, led by housing activity
  • Civil engineering and commercial building decline again in October
  • Confidence regarding 12-month outlook drops to weakest since December 2012

Much better headline from this sector but not a great contributor to GDP and the subtext is less impressive moving fwd. Algos don't care about that though.

GBP back up to 1.3265 but running into sellers again after the 1.3233 lows with the bigger BOE event casting a shadow.

Says Markit:

UK construction companies signalled that business conditions remained subdued during October. Output growth was largely confined to house building, which partly offset lower volumes of civil engineering and commercial activity.

Moreover, the balance of construction firms expecting an increase in business activity over the next 12 months eased to its weakest since December 2012. Caution in terms of the outlook for construction workloads meant that employment numbers increased at one of the slowest rates seen over the past four years.

Full report here