The slump in housebuilding accelerated last month as higher mortgage rates and the cost of living squeeze weakened demand and dragged the construction sector into contraction.
Activity in residential building is shrinking at the fastest pace since the first Covid lockdown.
According to the latest S&P Cips construction purchasing managers’ index, activity in the construction sector has shrunk for the first time in five months. The reading for UK construction PMI dropped to 48.9 last month, down from 51.6 in May, and housebuilding activity dropped to 39.6 from 42.7 in May. A figure below 50 indicates contraction.
