By Joe Mellor, Deputy Editor
More economic gloom as housebuilding activity plunged to lowest level in almost three years.
The depressing figures follow on from news in the manufacturing sector, reeling from poor global conditions and the looming EU referendum.
Tuesday’s manufacturing index showed it had slipped to its worst month in almost three years in February.
The housebuilding data comes from Markit/CIPS construction purchasing managers’ index growth in the building sector which sank to a 10 month low in February.
Developers are less willing to commit to projects due to the uncertain economic issues on the horizon. This has led to construction chiefs hiring less bricklayers.
Now housebuilding growth slumped to its lowest level since June 2013.
David Noble, chief executive of the Chartered Institute of Procurement and Supply, said: “The sector felt the pressure of challenging global economic conditions and softer demand growth.
“The housing sector, which once led the way with a robust performance, offered a poor show.
“The next few months will be critical to understanding whether this dampened optimism was justified and whether there are still more serious issues to be unearthed.”
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, added: “Recent sharp falls in business confidence, partly reflecting economic uncertainty brought about by the EU referendum, are subduing the recovery in construction activity.”
Howard Archer, chief UK and European economist at IHS Global Insight, said: “This is more worrying news for the UK economy. “The Government will be particularly disappointed to see housebuilding slow given that it is looking to address the UK’s acute housing shortage.”
Since you are here
Since you are here, we wanted to ask for your help.
Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.
Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.
If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.
To donate or subscribe to The London Economic, click here.
The TLE shop is also now open, with all profits going to supporting our work.
The shop can be found here.
You can also SUBSCRIBE TO OUR NEWSLETTER .
