DAVY VIEW

This morning’s Construction PMI at 52.3 indicates conditions were relatively upbeat in December, with orders and employment up sharply and sentiment improving, especially in the homebuilding sector. Clearly, the fresh lockdown in January, shutting down construction activity, will hit next month’s reading. Meanwhile, November’s retail sales data, down only 4.7% year-on-year (yoy), confirmed that the second lockdown had a far smaller impact on spending.