U.K. construction sector signaled a worsening contraction in December, driven by the decline in demand due to uncertainty in the future of the British economy, the Purchasing Managers’ Index data released on Friday showed.
The UK Construction PMI fell to 44.4 last month, compared to 45.3 in November last year, defying analysts' expectations that indicated an improvement in the sector to of 45.9.
It is worth noting that the poll was conducted between 5 and 20 December, the period during which the UK general elections ended with a landslide victory for the Conservative Party led by British Prime Minister Boris Johnson.
Much of the deterioration of the British construction sector was due to the blurring of the general scene inside the U.K. regarding the final form of the process of the Brexit.
Eyes will focus next week on the final services PMI data that may confirm a contraction of 49.2 in December.
As of 13:32 GMT, the pound traded lower for a third straight session versus
the U.S. dollar at 1.3091, yet it erased some of the earlier losses when it
tumbled to a low of 1.3053.