Tower Bridge in London, the UK. Sunset with beautiful clouds. Drawbridge opening. One of English symbols

The FTSE 100 index slipped by more than 0.20% on Friday morning ahead of the UK Construction Purchasing Managers’ Index (PMI). The European STOXX 600 edged up 0.2%. Other European indices like Germany’s DAX and Canada’s CAC 40 traded almost flat on Friday ahead of the US Nonfarm payroll data release.

UK Financial Data

The FTSE 100 index will react to the UK Construction Purchasing Managers’ Index (PMI) released on Friday. The PMI was up to 64.2 in May from the previous 61.6 in April. This was a bullish advance for the GBP. New orders increased at the fastest rate since April 1997.

UK construction sector remained on a strong recovery path with output growth hitting its highest level since September 2014. New order volumes surged at the fastest rate since the survey began over 24 year ago. Input cost inflation hit a record high in May reflecting a surge in demand for construction materials and shortages in supplies.

House building index, which was at 66.3, was the best performer in the construction sector in May. Despite easing of the expansion pace in April, Civil engineering activity index surged sharply to 61.3. There was strong demand for residential building work.

According to the latest data, there was an upsurge in purchasing activity across the construction sector. The start of new projects and sustained recovery in construction workloads resulted in a rise in staffing numbers in May. The job creation rate was the highest since July 2014.

Construction companies are positive about the growth outlook for the next year. Resurgent customer demand alongside optimism about United Kingdom’s economic outlook following the easing of the lockdown restrictions has contributed to the positivity in the markets.

FTSE 100 Movers

The best performer in the FTSE 100 index was Entain plc, a betting and gambling company. It was up by 1.21%. Other top performers in the index included Royal Mail plc, Reckitt Benckiser Group plc, and B&M European Value Retail SA. They recorded gains of 0.91%, 0.91% and 0.82% respectively.

The worst performer in the index was aerospace company, Rolls Royce Holdings Plc which declined by 2.83%. Other companies that lagged were Bunzi plc and International Consolidated Airlines Group SA each with a 2.12% and 1.41% decline, respectively.

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign Up for Our Newsletters

Get exclusive content in your inbox.

You May Also Like

Dow Jones Nosedives After Hawkish Fed Decision

The Dow Jones index retreated after weekly initial jobless claims data. The index reacted to the Fed’s hawkish tone towards the monetary policy.

Dow Jones Rally Pauses Ahead of Powell Testimony

US stocks set to open the markets mixed ahead of Powell’s testimony later in the day. GameStop recorded the most gains in pre-market trading.

Nikkei 225 Index Slides as Fed Decision Damp Cyclical Appeal

Japan’s Nikkei 225 index led the drags in the Asia Pacific stocks on Monday. The index hit its lowest level in four months.

ARKK Stock Price June Forecast: The Struggle Continues

The ARKK stock price rebounded in May after falling to a multi-month low. Is this the end of the sell-off?