Sterling dips after weak UK construction PMI

LONDON: Sterling weakened against the dollar after a survey on Wednesday showed British construction activity contracted in March for a third month running.

UK construction PMI inched up to 47.2 from 46.8 in February but held below the 50 level that separates expansion from contraction, undershooting the Reuters consensus forecast of 47.5.

The pound fell to around $1.5093 from $1.5116 before the data. It was last steady on the day at $1.5105.

Traders said the pound had risen slightly ahead of the release because of market talk that the data may be above forecasts.

A BoE survey released at the same time said British banks do not plan a big increase in lending to companies in the second quarter.