Growth in the UK construction sector fell to a five-month low in October as home building slowed sharply. Construction PMI fell to 61.4 in October from 64.2 the month before. A figure above 50 indicates growth. The fall was steeper than economists had forecasted but was affected by house building which saw its slowest rate of growth for a year.
One key factor for the slowdown has been tighter mortgage lending conditions and "renewed uncertainties" about demand. As since April, lenders have had to make more detailed checks before approving mortgages.
Despite the slowdown, the construction sector has now expanded for 18 months in a row, marking its longest continuous period of growth since the start of the financial crisis in 2007.
The European economy will grow by just 0.8% this year, the European Commission has said. The European Union's vice president, Jyrki Katainen, said that "the economic and employment situation is not improving fast enough".
The report says it will take another year to reach even a modest level of economic growth and has cut its growth forecast for 2015 to 1.1% from 1.7%. It predicts inflation will continue to be low and unemployment high. Also stating that continuing weakness in France and Italy would keep the brakes on recovery. Europe’s woes are also central to the recovery in the rest of the world.
Both the UK and the US, whose economies have been picking up, are being held back by slow demand from Europe.
The trade deficit in the U.S. widened in September as exports cooled highlighting how weakening global growth will affect the world’s largest economy. The gap grew by 7.6% to $43 billion, the largest since May, from $40 billion in August, exports decreased by the most since February of the back of slowing demand from Europe, Latin America and Japan.
This is the first sign that American companies international sales will suffer as economies from Europe to emerging markets struggle, indicating trade will provide less support to the expansion. In addition, cheaper oil and gains in crude production cut the value of U.S. purchases of foreign petroleum to a five-year low, offsetting record imports of consumer goods such as Apple latest
09:30- GBP: UK PMI Services expected to fall to 58.5 from 58.7
13:15- USD: ADP Non-Farm Employment Change ( Oct) expected to rise from 213K to 220K
15:00- USD: ISM Non-Manufacturing PMI (Oct) expected to fall from 58.6 to 58.2
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