killmicrosoft
06-08-2008, 09:19 AM
http://images.icnetwork.co.uk/design/transparent.gif
Hard-hit housing sector drags activity in UK construction sector to new low
http://www.walesonline.co.uk/business-in-wales/business-news/2008/08/06/hard-hit-housing-sector-drags-activity-in-uk-construction-sector-to-new-low-91466-21472561/
THE hard-hit housing sector has dragged activity in the UK construction sector to a new low.
The Chartered Institute of Purchasing and Supply’s (CIPS) Construction Purchasing Managers’ Index, which measures the industry’s performance, dropped 2.1 points to 36.7 in July – the lowest since the survey begun in April 1997.
A reading of more than 50 represents growth.
It is the fifth month in a row that overall activity has contracted, with housing the worst-hit area, the survey said.
CIPS housing index fell at its sharpest rate from 25.6 in June to 18.7 last month – also a new survey low.
July saw around 5,000 job losses announced by some of the UK’s major housebuilders, such as Taylor Wimpey, as they struggled with falling sales.
The survey also showed commercial construction activity deteriorated last month, with the reading falling to 38.2 from 41.1.
The civil engineering sub-sector rallied from 40 to 46.5, although still in falling activity territory.
Last month’s housebuilding job losses were reflected in CIPS’ employment index, which measures whether staffing levels are rising or falling in the sector. The figure was 45.6 in July, down from 47.8 the previous month.
Global Insight chief economist Howard Archer said: “There can be little doubt that the construction sector is now firmly in recession.
“Housebuilders are being hit extremely hard as housing market activity and house prices crumble in the face of elevated affordability pressures, tight lending and low buyer interest.”
There was more gloomy news as total incoming new business for UK construction companies also fell to a new low. CIPS’ New Orders Index posted a reading of 41 as firms cited a high level of unsuccessful tendering for the decline in business.
CIPS director Roy Ayliffe said: “Housing was again the sick man of the industry, as levels of activity plunged to a record low.
That said, poor performance in the commercial and civil engineering sectors couldn’t provide any cause for celebration. July marked an end to constructors’ optimism about recovery, as spirits were knocked by the persistent and rapid decline in new business and activity.”
Hard-hit housing sector drags activity in UK construction sector to new low
http://www.walesonline.co.uk/business-in-wales/business-news/2008/08/06/hard-hit-housing-sector-drags-activity-in-uk-construction-sector-to-new-low-91466-21472561/
THE hard-hit housing sector has dragged activity in the UK construction sector to a new low.
The Chartered Institute of Purchasing and Supply’s (CIPS) Construction Purchasing Managers’ Index, which measures the industry’s performance, dropped 2.1 points to 36.7 in July – the lowest since the survey begun in April 1997.
A reading of more than 50 represents growth.
It is the fifth month in a row that overall activity has contracted, with housing the worst-hit area, the survey said.
CIPS housing index fell at its sharpest rate from 25.6 in June to 18.7 last month – also a new survey low.
July saw around 5,000 job losses announced by some of the UK’s major housebuilders, such as Taylor Wimpey, as they struggled with falling sales.
The survey also showed commercial construction activity deteriorated last month, with the reading falling to 38.2 from 41.1.
The civil engineering sub-sector rallied from 40 to 46.5, although still in falling activity territory.
Last month’s housebuilding job losses were reflected in CIPS’ employment index, which measures whether staffing levels are rising or falling in the sector. The figure was 45.6 in July, down from 47.8 the previous month.
Global Insight chief economist Howard Archer said: “There can be little doubt that the construction sector is now firmly in recession.
“Housebuilders are being hit extremely hard as housing market activity and house prices crumble in the face of elevated affordability pressures, tight lending and low buyer interest.”
There was more gloomy news as total incoming new business for UK construction companies also fell to a new low. CIPS’ New Orders Index posted a reading of 41 as firms cited a high level of unsuccessful tendering for the decline in business.
CIPS director Roy Ayliffe said: “Housing was again the sick man of the industry, as levels of activity plunged to a record low.
That said, poor performance in the commercial and civil engineering sectors couldn’t provide any cause for celebration. July marked an end to constructors’ optimism about recovery, as spirits were knocked by the persistent and rapid decline in new business and activity.”