UK Construction Slump Triggers Interest Rate Cut Bets and Sterling Sell-Off

The UK's construction sector continues to struggle, with the August S&P Global Construction PMI coming in at 44.3, below market expectations of 45.9 and the crucial 50 threshold that separates growth from contraction.

This marks another month of declining activity in the sector, and a sharper downturn than anticipated by analysts.

The result has significant implications for sterling and gilts, with traders recommending shorting the British Pound against both the US Dollar and the Euro due to expected interest rate cuts from the Bank of England.