April 2016 UK construction PMI 52.0 vs 54.0 exp

Details of the April 2016 UK Markit/CIPS construction PMI data report 4 May 2016

  • Prior 54.2

  • Housing activity 51.5 vs 50.3 prior

Headline PMI at the lowest since June 2013. Three guesses what upcoming event is being blamed for the drop?

"Although UK construction grew marginally in April, clouds of uncertainty are hovering overhead, depressing the industry's outlook. Business activity expanded at its weakest pace since June 2013, clearly pointing to a loss of momentum in the sector.

Fears over weaker UK and global economic growth dealt a blow to confidence in the construction sector, leading to delays in new spending commitments. The prospect of the EU referendum and its outcome in June are likely to add to uncertainty too, with many construction firms preferring to wait and see what happens before making any decisions." Said David Noble CEO of CIPS

The quid is ignoring the data as it bounces from 1.4480 to 1.4508. With Brexit being blamed for a lot of softness entering things like the PMI's, the question will be what happens after the vote.

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