020 7898 0500The only release of note from the UK yesterday was construction PMI which came in the same as last month at 52.5. It had actually been expected to decline to 52, but the reading still points to the negative impact Brexit has had on the British economy. The release came on the day a thinktank close to Downing Street said that there is no strong business case for immediate significant divergence from the EU’s regulatory regime.
It wasn’t a great day for the pound as it began the week by weakening against the euro and dollar. It is a move that could continue tomorrow if further economic data releases show other UK sectors are being hit by Brexit. We’ll know more this morning when we see the services PMI for May – the figure is expected to climb a little from 52.8 in April to 53.
We will also see new car sales which came in hugely positive last month. However, there were mitigating circumstances, so it wouldn’t be a surprise to see a decline in May.
