Headline numbers have disappointed the UK economy. Data from the Office for National Statistics, released today, shows that it has shrunk by 19.1% in the three months to May, reflecting the depth of damage caused by the coronavirus-driven lockdown. It takes a very bad time to invest. But at Motley Fool we have repeatedly stressed that joining hands with the stock market crash in the recession will buy some of the best UK stock deals. If there is time to buy FTSE 100 or FTSE 250 stocks, it is time.
Room for optimism
If you are affiliated as an investor, allow me to share more data with you. It is true that the quarter surrounding GDP is bad. But the monthly numbers are actually getting better. GDP grew by 1.8% in May. I know it doesn’t seem like much. This is a big improvement when compared to March, which is 6.9%, and in April, which is down 20.3%.
The increase occurred while the lockdown was still going on. In detail, this indicates that the data will be much better for the post-lockdown period. It also wants V-shaped development. In fact, Bank of England chief economist Andy Haldane is already seeing signs of a V-shaped recovery. Of course, there are risks of derailing an uncertain recovery, but now I think we have a chance to be optimistic about the economy.
As I examine the data in-depth, the revival of the construction sector has been very encouraging. It rose 8.2% in May after the biggest drop in April. That month it dropped to 40.2% of the total. On a quarterly basis, it is still in poor condition, but the first ray of hope is beginning to appear. As a result, I think some of the best UK stocks to buy now are construction stocks.
It is best to buy UK shares
The FTSE 100 is an example of the Irish construction giant CRH. There is so much to like about it. First, its share price recovered well from the stock market crash. This is despite the poor performance of the construction sector. Two, its last trading update in April was positive. Three, it is a growing and profitable company with operations in geographical areas. Its geographical risk reduces the risk of trading through a concentration in a single economy.
Similarly, the FTSE 250 Landscape Marshall is another investment option in the construction sector. Its stock price was at an all-time high before the stock market collapsed. When it encounters a lockdown, it indicates a return to its latest update functionality. Like CRH, it is also seeing increased revenue and is profitable. Unlike CRH, however, it is mostly found in the UK. For investors interested in UK-centric stocks, especially in the wake of the structural change in today’s GDP report, it is my opinion that it is one of the best UK stocks to buy.
Top share with enormous growth potential
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