The GBP/USD pair is down slightly today as traders reflect on the uncertainty about Brexit. The pair is also reacting to data from the United States and the UK. It is trading at 1.2950, which is a few pips below the intraday high of 1.3000.
UK construction sector remains resilient
The construction sector plays an important role for the British economy. It is the third-biggest contributor to the GDP after services and manufacturing. Before the pandemic, it created more than 2.4 million jobs.
In recent months, the housing sector has done relatively well as more people take advantage of low interest rates. Indeed, more than 70k people got mortgages in August, which was a record number.
And today, data from Markit and the Chartered Institute of Procurement and Supply (CIPS) showed that the construction PMI rose to 56.8 in September. That was a better performance than the previous month’s 54.6. The median estimate by economists polled by Reuters was 54.0.
The homebuilding sector was the strongest as companies increased their expansion for the fourth straight month. Commercial development also increased while civil construction fell for the second consecutive month.
New orders jumped for the fourth straight month while companies continued their purchasing activities. Business confidence also rose to the highest level in 12 months. However, employment in the construction sector continued to weaken while the cost of building rose. In a statement, Duncun Brock of CIPS said:
“UK Construction took off in September, soaring ahead of both the manufacturing and service sectors in terms of output growth and recording the fastest rise in purchasing activity since October 2015.”
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