U.K. construction data

• Index of business activity in the construction sector (Feb), fact 49.5,  forecast 50.5.

Data on business activity in the UK construction sector slowed down in February, actually approaching the minimum annual values. This indicated a continued downward trend in the UK property market. This indicator continues to decline for the third month in a row. This dynamic is quite natural on the general decline in business activity in the country and the slowdown of the UK economy, not to mention the decline in the cost of housing prices.

Fig. 1. Chart of business activity index in the UK construction sector

The reaction of the British pound on the weak construction data in the UK remains restrained. It is due to the expectation of weak data and increased optimism in the stock markets of Europe. The GBP/USD pair maintains a restrained uptrend, limited to resistance levels: 1.3280 and 1.3300, support: 1.3200 and 1.3180.

Fig. 2. GBP/USD chart. Current price – 1.3250

Read also: “Dow Theory – Averages must confirm each other”

Hanzenko Anton

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