The UK’s construction sector showed some decline in May 2016. This is confirmed by the recent report released by the Office for National Statistics, Great Britain’s official statistical agency. The report says that the decline may well affect the country’s GDP in Q2 2016.
To be more specific, the construction sector shrank by 2.1% in May relative to April. For the sake of comparison. April’s figures indicated a 2,8% increase relative to March. It is also interesting to note that experts had anticipate only a 1.1% drop but the actual figures turned out to be much worse. By the way, the residential property niche of he construction sector shrank by 3.2% over the same reporting period.
Experts say that May’s decline in the local construction sector was mainly triggered by the uncertainty that was in the air amid of June’s Brexit referendum. People didn’t know what to expect from it and preferred to wait till the situation clarifies a little bit. At the same time, the negative dynamics in the sector is capable of affecting the entire British GDP, the ONS experts say. The British economy sees to have slowed down to 0.4% even despite the fact that the local service sector and household spending increased over the same reporting period.
FOREX
The British Pound keeps on recovering from a long-term downtrend against U.S. Dollar, Masterforex-V Academy reports. Even though the price is still moving within the scope of a major bearish wave, which is wave 3/C of level Weekly, at the very moment the price is building wave b(C ) inside of the move, which makes the mentioned recovery.
If the price breaks below the 1.2796 low, this is going to resume the downtrend. For now, the closest major levels of support are located at 1.2540, 1.2275/34. However, if the price does manage to break above the top of he descending MF sloping channel and MF pivot 1.5015, we are going to see the bearish market bias reverse for an uptrend.
