UK Construction Orders Slump; Service Sector Growth Slows

Arthi Gupta
03 Jun, 2011
New York City

The UK indexes traded flat after construction orders slumped in the first quarter and service sector growth slowed in May. Ireland services sector activity improved In May. WPP acquired a 70% stake in Brazilian digital agency Gr

[R]5:00 PM London – The UK indexes traded flat after construction orders slumped in the first quarter and service sector growth slowed in May. Ireland services sector activity improved In May. WPP acquired a 70% stake in Brazilian digital agency Grïngo.[/R]

In London, FTSE 100 Index gained 7.09 or 0.12% to 5,855.01 and the pound edged lower to close at $1.6361. For the week, the FTSE 100 Index slumped 2.25%.

UK Construction Orders Slumps

UK construction orders declined significantly in the first quarter, data from the Office for National Statistics showed today.

The volume of construction orders fell 23% in the first quarter from the previous quarter, with all sectors logging negative growth. On a yearly comparison, new construction orders declined 18%.

Orders for private housing decreased 13% sequentially and public housing orders declined 20%. The volume of infrastructure orders plunged 48% and non-housing, excluding infrastructure orders slipped 25% from the fourth quarter.

UK Service Sector Growth Slows

UK service sector growth slowed to its weakest level in three months in May, data from Markit Economics showed today.

The headline Markit/Chartered Institute of Purchasing & Supply Business Activity Index fell to 53.8 in May from April''s 54.3.

Ireland Services Activity Improves

Ireland''s services activity growth increased in May, survey data from Markit Economics showed today. The seasonally adjusted Business Activity Index for the service sector rose to 50.5 in May from 50.2 in April.

Gainers & Losers

IP Group Plc climbed 0.94% to 53.75 pence after the holding company appointed Greg Smith to the board as chief financial officer with immediate effect.

Iron Mountain Inc. fell 1.11% to $32.84 after the information management company completed the sale of its online backup and recovery, digital archiving businesses to Autonomy Corp. plc for $380 million in cash.

Lipoxen Plc rose 0.58% to 8.68 pence after the biopharmaceutical company reported fiscal year 2010 revenue surged 234% to £1.57 million from £0.47 million in the prior year. Loss for the period narrowed 44.2% to £1.93 million or 1.13 pence per share compared to a loss of £3.46 million or 2.47 pence per share last year.

London Stock Exchange Group plc dipped 0.10% to 970 pence after Europe''s leading exchange group and TMX Group Inc. announced that the Canadian Commissioner of Competition issued a ""no action letter"" in connection with their proposed merger.

WPP Plc gained 1.02% to 739.50 pence after the provider of media communications services stated that its wholly-owned operating company and interactive marketing agency Possible Worldwide acquired a 70% stake in Brazilian digital agency Grïngo Publicidade Ltda.