United Kingdom GBP

United Kingdom Construction PMI

Impact:
Low

Latest Release:

Date:
Surprise:
1.6
Actual:
58.1
Forecast: 56.5
Previous/Revision:
55.9
Period: Jun
What Does It Measure?
The United Kingdom Construction PMI (Purchasing Managers' Index) measures the economic health of the construction sector, explicitly assessing variables such as construction activity, employment, supplier deliveries, and inventory levels. The primary focus includes evaluating expansion or contraction in the industry, with a PMI score above 50 indicating growth and below 50 signaling a decline in the construction performance.
Frequency
The Construction PMI is released monthly, typically providing a preliminary estimate of sector activity on the first business day of the month for the previous month.
Why Do Traders Care?
Traders pay close attention to the Construction PMI due to its significant implications for the broader economy and financial markets, as trends in construction can indicate future economic activity. A higher-than-expected PMI is generally bullish for the British pound and equities, while a lower reading may negatively impact market sentiment and lead to bearish conditions.
What Is It Derived From?
The Construction PMI is derived from a survey of purchasing managers in the construction industry, who provide insights into changes in business activity. The index is calculated using a diffusion index methodology that weights responses based on activity levels and collects data on new orders, employment trends, and supplier performance to gauge overall industry conditions.
Description
The Construction PMI report presents an early indication of construction activity, which can influence investment decisions and economic forecasts. This index is considered a leading economic indicator, reflecting shifts in market sentiment and probable future spending in the construction sector, which is pivotal for economic growth.
Additional Notes
The Construction PMI is often related to other economic indicators such as the Manufacturing PMI and Services PMI, providing a comprehensive view of economic activity across sectors. It serves as a leading indicator, helping to assess future economic conditions in the UK construction industry and its correlation to economic trends in other regions.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for GBP, Bullish for Stocks. Lower than expected: Bearish for GBP, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
Jul 02, 2015
58.1
 56.5
55.9
 1.6
Jun 02, 2015
55.9
 55
54.2
 0.9
May 05, 2015
54.2
 57.5
57.8
 -3.3