### UK Construction PMI Data Still..........>

UK DATA: ### UK Construction PMI Data Still Pointing to Sector Weakness

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Despite April's improvement in the headline number, the UK construction PMI

still points to output contraction in the sector. While the headline index rose

from 47.0 in March to 52.5 in April, back above its February value before the

extreme weather hit, historically growth in official quarter-over-quarter

construction output has only been consistent with a headline index value above

the 53.0-mark. With New Orders returning only marginally above the 50-level in

April, signals of underlying weakness also persist. It is worth remembering that

the survey also only captures whether conditions were 'better' or 'worse',

without capturing the magnitude of any such change. So, a marked rebound in Q2

output may not be on the cards just yet.