The Chartered Institute of Purchasing and Supply reported a fall in United Kingdom Construction Purchasing Manager’s Index. Construction grew at the weakest pace in 10-months, printing at 54.2 in February after missing expectations of 55.5 and prior month’s 55.0. This is the second consecutive month of construction having slowed down as the concerns about the looming EU referendum vote and possible “Brexit” are reflected by customers suspending building projects while contractors cut back on hiring. Although the Bank of England has kept interest rates at record low levels of 0.50% in order to help spur the economy, recent statements have seen officials stress that the central bank is prepared to provide more stimulus if necessary to accommodate conditions ahead of the Brexit referendum on June 23rd. The Pound rallied against the US dollar following the report, climbing back above the critical 1.4000 level to as high as 1.4093 during the session.
Chinese Services PMI Signals Further Slowdown
Daily Analysis - 03/03/2016