Housebuilder Persimmon releases its first-half trading update on Thursday (6 July) with plenty of nervousness surrounding the sector.
Latest housing data suggests demand is still reasonable but the impact of the recent mortgage rate rises has yet to be really felt
Persimmon’s share price has halved in a year due to the worries, which reflect the upward turn in interest rates and also an end to government support schemes such as the stamp duty tax break and Help to Buy.
"The dividend has already been cut and analysts have pencilled in a second straight drop in profits in 2023," says AJ Bell.
In an update in April, Persimmon suggested completions in 2023 could reach the top end of the 8,000 to 9,000 guided range, which at the top end is a 40% drop from a year ago.
Any revisions to that will be something to watch for says AJ Bell, alongside average selling prices, which came to just under £250,000 in 2022 and net private sales per outlet.
Private sales recovered to 0.62 in the first quarter and will be another key number next week.