Yesterday saw the release of PMI data for UK construction, which has fallen for the first time in eleven months. It now reads at 49.5, falling under the 50 mark and therefore stepping into contraction territory.
Brexit uncertainty has caused a surge in stockpiling, resulting in a shortage of building materials and leaving builders to wait longer for necessary products. It has also stinted the implementation of new projects due to slowed decision making and a general willingness to avert risk.
This has therefore caused a fall in activity and the lowest PMI reading for 11 months. The pound has also weakened slightly as a result.
Later today, focus will be on Attorney General Geoffrey Cox and Brexit Secretary Stephen Barclay, who will travel to Brussels for talks with the European Union’s Brexit negotiator Michel Barnier. Cox’s legal assessment of any changes to the backstop clause are expected to widely influence whether MP’s vote to support May’s deal.
Services PMI for February will come out this morning, and it will be interesting to see if they have fared the same way as both construction and factories. Minutes from the Bank of England Financial Policy Committee will also be released.
