GBP 
British construction activity expanded at the slowest pace in more than a year
last month, with order books filling at the slowest pace since June 2013 and
optimism waning. The Markit PMI fell to 59.4 in November, its weakest reading
since October last year, down from 61.4 in October.

While falling short of economists’ expectations for a slight decline to 61.0,
the index was comfortably above the 50 threshold for growth, as well as its

GBP 
British construction activity expanded at the slowest pace in more than a year
last month, with order books filling at the slowest pace since June 2013 and
optimism waning. The Markit PMI fell to 59.4 in November, its weakest reading
since October last year, down from 61.4 in October.

While falling short of economists’ expectations for a slight decline to 61.0,
the index was comfortably above the 50 threshold for growth, as well as its
long-run average of 54.5. Analysts suggested the contraction was down to weaker
figures from the civil engineering sector, although house building still
remained strong.

Most construction companies are still optimistic, however they noted noted
that uncertainties ahead of next year’s general election had weighed on
business confidence and influenced client’s willingness to commit to new
projects.

British households are spending less on eating out, hotels, alcohol and smoking
according to the annual survey official survey of Family budgets released by
the office of national statistics. The Survey revealed how rents, gas and
electricity are taking a larger portion of spending. Total average spending by
families in 2013 was 517.30 a week, an increase from £501 the year before but
was substantially below the 2006 peak of £539.80 spent per week. 

USD
US construction spending recorded it largest gain in five months in October
easing concerns of a sharp slowdown in fourth quarter economic growth.
Construction spending rose 1.1 percent the biggest advance since May.

There were expectations yesterday that U.S. Federal Reserve Chair Janet Yellen
would discuss or the outlook for monetary policy in welcoming remarks on
Tuesday to US College Students. However Yellen made no comment on current
economic conditions or the outlook for monetary policy As a result the USD was
unmoved when she spoke.

Today
The big news today is the Autumn annual statement from Chancellor of the
Exchequer George Osborne where he will outline the
governments spending plan for the next 12 months. We except to see
some volatility in the pound during his speech to parliament. Later
on in the afternoon we have the US non farm Payroll employment estimates that
are expected to be slightly lower than last month so we could see
some dollar weakness off the back of a lower estimate. 

Key
Announcements:

09:30- GBP: Markit services PMI (Nov) expected to be higher at 56.5 from 56.2
12:30- GBP: Autumn Forecast statement
12:30- USD: ADP Emplyment Change (Nov) expected to be lower to 221K from
230K 

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