Pound Sterling Rises Supported by Construction Sector Data

The Pound Sterling has continued to climb since the start of trading on Thursday, buoyed by improved UK data highlighting progress in the construction sector recently.

GBP/USD rose to 1.2755 compared to the previous close of 1.2700 on Wednesday. The pair reached a daily low of 1.2692 against a high of 1.2770.

The UK Construction Purchasing Managers’ Index (PMI) rose to 55.2 in November, compared to the previous month’s reading of 54.3 in October, which was higher than market expectations of 53.4.

This reading highlights the significant growth achieved by the sector, although the report contained mixed numbers reflecting some differences in performance across different sub-sectors. Commercial construction achieved its strongest growth in two and a half years. On the other hand, the housing construction component declined to its lowest level since last June, as house building activity slowed due to rising interest rates and weakening consumer confidence.