Economy
U.K. Construction Slumps Following Weak Manufacturing Data
U.K. construction further plunged the economy after weak manufacturing purchasing managers’ index showed on Tuesday production contracted last month and confidence fell amid brexit decision.
Construction index expanded 52 in April but below 54.1 forecast by experts, this marked the weakest pace in almost three years, according to Markit Economics.
This raised concern that the June 23 referendum is holding back growth as investors are in doubt of the possible out-come, especially with divided politicians.
“The first quarter slowdown is unlikely to prove temporary,” said Tim Moore, an economist at Markit in London. Weaker growth and EU uncertainty “appear to have provided reasons for clients to delay major spending decisions until the fog has lifted.”
Manufacturing purchasing manager dropped to 49.2 in April from 50.7 recorded in March, while economists surveyed forecasted 51.3.
The pound has since lost 80 percent of its last week gains against the dollar to trade at 1.4560.