Sterling remains steady near a 4-1/2 month high against the dollar following more strong data showing the United Kingdom construction sector surprisingly expanded in March. PMI data show that orders rose at the fastest rate in over four years as construction firms have an improved outlook on the British economy.
the Markit/CIPS construction Purchasing Managers’ Index hit its highest level in 21 months and surprised analysts expectations for a slight decline. PMI rose to 56.7 in March from February’s 54.3
The strong data have led many to speculate that the Bank of England will probably hold off from more stimulus measures and reduce the likelihood of expanding more quantitative easing, which usually weakens a currency.
“The good weather appears to have led to a surge in demand for construction projects in March, adding to the recent flow of good news which suggests the economy will have skirted a recession,” said Markit’s chief economist, Chris Williamson.