UK construction shrunk at its fastest pace since 2009 after the UK voted to Leave the EU.
The figures offer little comfort to prospective homeowners after a damning report from the Resolution Foundation revealed that home ownership has fallen to its lowest level for 30 years.
The research shows supply has failed to keep pace with demand in the UK, shutting buyers out of the market.
The Markit/Cips data for July showed that the purchasing managers’ index, or PMI, for the construction industry fell to 45.9 in July from 46.0 in June.
The index measures new orders, deliveries and employment, among other things, and is considered a key indicator in the confidence of the construction sector.
Survey respondents noted that uncertainty following the EU referendum had dampened client confidence, led to greater risk aversion, and encouraged a wait-and-see approach to decision making.
There were some reports that demand had been more resilient to Brexit than expected. But just 15 per cent of firms reported higher activity in July against 23 per cent that reported a decline.
The figures deal a further blow to a sector that was already in recession in the second quarter and has been greatly underperforming the rest of the economy, Markit said.
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Concept feature image courtesy www.catholicherald.co.uk
