UK Construction Benefits From Housing Boom

Britain’s construction industry powered ahead in June as companies hired a record number of staff to cope with a sharp rise in house building.

A snapshot of the UK’s building sector signalled a positive contribution to the wider economy in the second quarter as new orders continued to pile up last month.

The Markit/CIPS construction PMI rose to 62.6 in June from 60 in May, where anything above 50 indicates growth. It matched February’s number, and beat City forecasts of a slight drop in the index to 59.5.

The pound rose to a near six-year high against the dollar when the data was published, to $1.718.

The biggest driver of growth was housebuilding, which jumped to 66.6 from 62.7 a month earlier, but commercial property building and civil engineering also continued to grow.

Bigger workloads encouraged companies to took on workers at the fastest rate since the survey began more than 17 years ago.

Tim Moore, senior economist at Markit, said the record job creation represented “a remarkable yardstick of progress as the sector looks to recover the ground lost over the past seven years.”

via The Guardian

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza