2 Oct 2014
UK Construction PMI stronger than expected once again - TD Securities
FXStreet (Łódź) - Paul Fage, Senior Emerging Markets Strategist at TD Securities comments on the UK September Construction PMI numbers released in the European morning and showing an increase to 64.2 from 64.0, against forecasts of a drop to 63.5.
Key quotes
"Looking into the details there are the first signs of cooling."
"New orders and job growth continue to grow, but at the slowest pace in four months while price pressures continue because of the exceptional pace of growth that has been sustained."
"Residential construction has indeed started to trend lower, but it is the civil and commercial side, which had been lacking, which continue to improve for now on the back of better business investment."
"We would still be wary of seeing some sort of correction here over the next few months if overall activity continues to ease, but for now, this suggests we can see similar outperformance of the services PMI tomorrow."
Key quotes
"Looking into the details there are the first signs of cooling."
"New orders and job growth continue to grow, but at the slowest pace in four months while price pressures continue because of the exceptional pace of growth that has been sustained."
"Residential construction has indeed started to trend lower, but it is the civil and commercial side, which had been lacking, which continue to improve for now on the back of better business investment."
"We would still be wary of seeing some sort of correction here over the next few months if overall activity continues to ease, but for now, this suggests we can see similar outperformance of the services PMI tomorrow."