FTSE 100 index opens higher as millions across the UK head to the polls

The UK’s construction sector continued to expand in June, although it lost some momentum amid a fresh fall in housebuilding, according to a survey.

A slower rise in new orders was also recorded, in some cases linked to election uncertainty, but the pace of job creation picked up. Meanwhile, the rate of firms’ input cost inflation accelerated from May, but remained muted.

Continued growth of the UK construction sector in June meant that the sector has recorded sustained expansion throughout the second quarter of the year. While there were signs of a slowdown in the latest survey period, most notably around housing activity, firms indicated that a slowdown in new order growth was in part related to election uncertainty. We may therefore see trends improve once the election period comes to an end.

Moreover, confidence in the year ahead outlook remained strong and firms increased employment to the largest extent in ten months.

The year’s midpoint sees the new car market in its best state since 2021 – but this belies the bigger challenge ahead. The private consumer market continues to shrink against a difficult economic backdrop, but with the right policies in place, the next government can re-energise the market and deliver a faster, fairer zero emission transition.

All parties are agreed on the need to cut carbon and replacing older fossil fuel based technologies with new electrified powertrains is the essential step to achieving that goal.

Eurozone private sector also loses momentum, with activity at three-month low

In the eurozone, private sector growth eased to a three-month low, with activity in the service industries also at a three-month low, according to a closely-watched survey.

Demand for euro area goods and services declined for the first time since February.