Skip to main content
The Markets by Proactive
Go to Proactive UK
Proactive UK has moved. Proactive’s coverage of London’s small caps continues on proactiveinvestors.com Go there →
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Builders and building materials

Construction activity dragged down by weak housing market

The UK's construction sector contracted in June hit by a sharp fall in the housing sector.

Figures from S&P Global showed residential work (index at 39.6) decreased at the steepest pace since May 2020 reflecting weaker demand due to rising borrowing costs.

Aside from the lockdown-related fall in house building, the rate of contraction was the fastest since April 2009.

The figures came within the S&P Global/CIPS UK Construction PMI which showed a renewed decline in business activity during June.

At 48.9 in June, the index was down from 51.6 in May, and below the neutral 50.0 threshold for the first time in five months.

Civil engineering was the best-performing segment (index at 53.1), with business activity rising at the second-fastest pace since June 2022 while commercial building also expanded at a solid pace in June (index at 53.0).

Housebuilders reflected the general malaise in the markets. Taylor Wimpey PLC (LSE:TW.) (Taylor Wimpey PLC (LSE:TW.)) fell 2.7%, Persimmon PLC (LSE:PSN) (Persimmon PLC (LSE:PSN)) slipped 2.6% and Barratt Developments PLC (LSE:BDEV) (Barratt Developments PLC (LSE:BDEV)) eased 2.3%.

Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK