U.K. construction PMI likely to have dropped in January

The robust increase in U.K.’s construction PMI in December was due to additional rise in housing construction that was consistent with the general rebound seen in other indicators of housing market, but also of a less predictable rise in civil engineering construction, noted Societe Generale in a research report.

The strength of the housing component is likely to continue; however, given its volatility, there might be some weakening in the civil engineering part. The construction PMI is expected to have dropped in January to 53.7 from 54.2 in December.