Trade GB 100 Index

UK economic data in the recent week were negative. UK construction sector activities expansion slowed while retail prices continued declining. The S&P Global reported earlier in the week that UK Construction PMI fell from 55.2 in November to 53.3 in December 2024, the lowest in six months. Readings above 50.0 indicate sector expansion, below indicate contraction. While commercial and civil engineering constructions continued growing, the residential construction recorded its third consecutive monthly decline, contracting at the fastest rate since June 2024. Slowing construction activity indicates slowing growth of gross domestic product(GDP) which is bearish for Pound and GBPUSD pair. A few days later UK’s British Retail Consortium (BRC) reported the decline of the index of prices of goods purchased at BRC-member retail stores accelerated in December: the BRC Shop Price Index dropped 1.0% over year after 0.6% fall in November, when a 0.4% decline was forecast. BRC accredited price drops to Black Friday discounts. Continuing decline in BRC Shop Price Index points to weakening demand for consumer goods at BRC shops which may indicate weakening of UK retail sales. Indications of weakening of UK retail sales are also bearish for Pound and GBPUSD pair price. However, the current setup is bullish for the GBPUSD pair.