Investing.com - U.K. construction sector activity in June fell to its weakest in seven years, unexpectedly entering contraction, industry data showed on Thursday.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index fell to a seasonally adjusted 46.0 from May’s reading of 51.2.
Economists had expected the index to drop to 50.5 in June.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
The reading was the first time since April 2013 that construction activity was in contraction and it was at its weakest level in exactly seven years.
Markit did point out however that the rate of contraction was much slower than that seen in 2008-2009 downturn.
Nevertheless, the report showed a sharp reversal in residential and commercial activity, while incoming new work declined at the steepest pace since December 2012.
Immediately following the report, GBP/USD was trading at 1.3261 from around 1.3288 ahead of the release of the data, while EUR/GBP was at 0.8372 from 0.8361 earlier.
Meanwhile, European stock markets were trading mixed. London’s FTSE 100 slipped 0.03%, the Euro Stoxx 50 inched up 0.01%, France's CAC 40 lost 0.21%, while Germany's DAX gave up 0.10%.