UK economic conditions falter as incomes fall

Construction activity in the UK has fallen for the first time in 13 months as companies in the commercial building sector shy away from taking risk. The 'Purchasing Managers' index showed the sector be in contraction in September, which comes shortly after Monday saw a similar survey for UK manufacturing return weaker than expected sentiment. Though still in expansion, the manufacturing sector has lost momentum since the Brexit vote, leading to fears that a material slowdown in the UK economy is crystallising. Following these releases, new data today has also shown that consumers are facing the largest fall in real disposable incomes since 2011, a measure of income available to households after tax and adjusted for prices changes. Following these releases, Sterling has fallen moderately against major currencies both yesterday and today, though otherwise equities and bonds seem relatively unfazed.