UK Construction Sector Slowdown Pressures Pound
It's a good time to secure commercial funding
UK construction sector slowdown pressures pound
The pound found itself reacting unusually strongly to yesterday’s construction PMI, despite the index only accounting for a small percentage of UK economic output.
What’s been happening?
The pound was tipped into a sharp decline yesterday after the latest Markit construction PMI for the UK showed a surprise slowdown in the construction sector.
Although the construction sector only accounts for around 0.6% of UK GDP, markets were worried that the performance of the index was indicative of the general feeling of UK businesses.
House building still rose strongly, commercial construction posted a sharp decline, suggesting that businesses are curbing their investment in the face of the political and economic uncertainty currently shrouding the country.
What's coming up?
The UK services PMI this morning will likely have a significant impact on the pound, given its importance. Services accounts for over 75% of the UK’s economic output, so a weak result here would point to another poor quarter-on-quarter performance for the UK economy during the third-quarter. A strong rise may help to soothe fears over the trajectory of the economy.
So whilst construction as a sector may be slowing there is still plenty of appetite amongst lenders to loan for development projects. Commercial finance, land bank loans and bridging loans are all available if you know where to go – and we do!
Sometimes the niche banks come up with the best deals so let us find you the right commercial funding at the right price for you.