UK construction PMI: Risks point to a weaker reading - TDS

Research Team at TDS, suggests that the UK construction PMI follows on the heels of Monday’s downward-revised manufacturing PMI.

Key Quotes

“Given the 5pt drop that we saw in last month’s (mostly pre-Brexit) construction PMI, and the recovery we’ve seen in construction sector equities since the Brexit vote, we think that we’ve likely already seen the worst of declines in the construction sector and both us and the market look for a further 2pt drop to 44.0 in July, which still keeps it well above its financial crisis lows in the high-20s. But with downside news in yesterday’s manufacturing PMI, the risks point to a weaker reading.”