“UK builders suffer worst monthly decline in a decade”

Owl says: time to stimulate sales with price drops, perhaps? Bringing that profit-per-house at Persimmon down from £77,000 to, say, £27,000 would certainly bring a lot of buyers in! Of course, then there would be no masdive director bonuses, so guess that’s a non-starter (home).

“Britain’s construction sector suffered as “sharp drop in momentum” last month, says data firm Markit.

In a very worrying healthcheck on the construction sector, Markit has found that business activity and incoming new work both fell at the fastest pace for just over 10 years.

Housebuilding, commercial construction and big civil engineering work all contracted during the month — a bad sign for the whole construction sector.

Builders across the country blamed “risk aversion among clients in response to heightened political and economic uncertainty.”

That suggests people are simply unwilling to take risks while they don’t know how the Brexit crisis will be resolved.

This has dragged the IHS Markit/CIPS UK Construction Total Activity Index down to just 43.1 in June, down sharply from 48.6 in May. Any reading below 50 shows a contraction, and this shows the steepest reduction in overall construction output since April 2009.” …

UK builders also reported that new orders dropped at the fastest rate in over 10 years, while demand for construction products and materials fell at the sharpest pace since the start of 2010.”

https://www.theguardian.com/business/live/2019/jul/02/london-house-prices-fall-brexit-slowdown-construction-pmi-business-live?CMP=Share_iOSApp_Other

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