Investing.com - U.K. construction sector activity expanded at a slower rate than expected in July, dampening optimism over the health of the economy, industry data showed on Tuesday.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index declined to a seasonally adjusted 57.1 last month from a reading of 58.1 in June. Economists had expected the index to improve to 58.4 in July.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
July data signal led a slight overall loss of momentum across the U.K. construction sector, with business activity and incoming new work both expanding at slower rates than in the previous month.
Commenting on the report, Tim Moore, senior economist at Markit and author the report, said, “July’s growth slowdown is the first for three months and perhaps a sign that the post-election impact on construction confidence as started to diminish."
GBP/USD was trading at 1.5590 from around 1.5598 ahead of the release of the data, while EUR/GBP was at 0.7039 from 0.7032 earlier.
Meanwhile, European stock markets were mixed. London’s FTSE 100 tacked on 0.2%, the EURO STOXX 50 lost 0.3%, France's CAC 40 shed 0.3%, while Germany's DAX inched up 0.1%.