Construction Sector Data Prints Lowest In Months
05 Feb 2018
Published in: The Chamber Patron Group
Please find RationalFX's daily market report for today together with all the economic data/times for today's event(s):
The Pound struggled on Friday after figures revealed growth in activity in the construction sector almost ground to a halt in January, after a closely-watched index showed it had fallen to its lowest in four months.
IHS Markit's purchasing managers' index (PMI) for the construction industry fell to 50.2 and housebuilding, the industry's strongest sector, declined for the first time in 16 months, while the rate of job creation fell to an 18-month low.
A contraction in housebuilding added to lacklustre commercial building and civil engineering markets, and reduced inflows of new work suggest overall activity could slip into decline in February. Furthermore, cost pressures remained intense, fuelled by shortages of input materials and high costs for imported products.
The U.S. dollar jumped on Friday after data showed the strongest annual wage growth since 2009 which could accelerate inflation and lead to more interest rate hikes in the US than expected this year.
Minneapolis Federal Reserve President Neel Kashkari, who voted against all three interest rate hikes last year due to low inflation concerns, said on Friday the January employment report is "one of the first signs" of wage growth.
The Fed is expected to hike rates three times in 2018. On Wednesday, Fed officials held rates steady after their two-day January meeting, the last one for Janet Yellen as Fed chair.
- 09:30 - GBP - Services PMI is expected to fall to 54.2
- 15:00 - USD - ISM non-manufacturing PMI is forecast to increase to 56.6
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