Angela Rayner wants to (Image: Getty)
Angela Rayner has suffered a major blow as new data suggests the construction industry has contracted when the Government is aiming to build 1.5million new homes. Activity in the UK’s construction sector dropped at the fastest rate in more than five years in July following a fresh housebuilding slump, a new survey showed, as companies reportedly lay off staff. S&P Global said earlier today: "Underlying data highlighted marked decreases in volumes of work carried out across all three monitored sub-sectors, but a considerable drag came from a fresh drop in residential building."
The firm's UK Construction Purchasing Managers’ Index (PMI) was pulled down to 44.3 in July, from 48.8 in June. Any number below 50 represents a contraction, and this latest reading suggests there has been the sharpest contraction in more than five years. Gareth Belsham, director of Bloom Building Consultancy, said: “There’s no sugarcoating it - this data will be tough to swallow for almost everyone in construction.
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Anyone with ￡10,000 savings given ￡300 warning to act today over Bank of England change
Four savings accounts guaranteed to beat the interest rate cut right now
Bank offers 4.4% savings rate guaranteed to beat interest rate cut
Chase Bank cuts rate for savings from next Thursday in message to customers
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Anyone with savings in one type of bank account urged to switch now
Santander account that offers bumper 6% interest rate even after BoE cut
Nationwide Building Society to slash mortgage rates by 0.25%
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Martin Lewis tells anyone with savings to take action from Thursday
Market-leading Cash ISA account cuts rate as customers sent unwelcome message
'Act now' warning issued to UK savers as ￡300 at risk after interest rate cuts
Anyone with ￡10,000 savings given ￡300 warning to act today over Bank of England change
Four savings accounts guaranteed to beat the interest rate cut right now
Bank offers 4.4% savings rate guaranteed to beat interest rate cut
Chase Bank cuts rate for savings from next Thursday in message to customers
I'm a property finance expert - here's what borrowers must do after interest rate drop
Anyone with savings in one type of bank account urged to switch now
Santander account that offers bumper 6% interest rate even after BoE cut
Nationwide Building Society to slash mortgage rates by 0.25%
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The Government wants to build 1.5million new homes. (Image: Getty)
“All three subsectors of the industry saw output contract in July, with the sharpest fall coming in civil engineering. Housebuilding, the sector beloved of politicians in need of a photo opp, also declined badly.
“To make matters worse, the pipeline of new work is drying up fast. New order numbers have now fallen for seven months in a row, with July’s slump the worst seen since February."
The expert also warned that staff were being let go due to the downturn. Mr Belsham said: “Little wonder contractor confidence is weak and many construction firms are laying off payrolled staff.
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Gareth Belsham said the latest figures will be 'tough to swallow'. (Image: Bloom Building Consultancy)
“June saw sentiment plunge to its lowest level since December 2022, and while July’s figure improved marginally, even the most optimistic of builders will find it hard to see the glass as half full."
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'Next steps for anyone with a credit card' after interest rate cut
Martin Lewis tells anyone with savings to take action from Thursday
Market-leading Cash ISA account cuts rate as customers sent unwelcome message
'Act now' warning issued to UK savers as ￡300 at risk after interest rate cuts
Anyone with ￡10,000 savings given ￡300 warning to act today over Bank of England change
Four savings accounts guaranteed to beat the interest rate cut right now
Bank offers 4.4% savings rate guaranteed to beat interest rate cut
Chase Bank cuts rate for savings from next Thursday in message to customers
I'm a property finance expert - here's what borrowers must do after interest rate drop
Anyone with savings in one type of bank account urged to switch now
Santander account that offers bumper 6% interest rate even after BoE cut
Nationwide Building Society to slash mortgage rates by 0.25%
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Tomorrow, the Bank of England will unveil its interest rate decision, and it is expected that officials will cut it.
Mr Belsham said: “Tomorrow the Bank of England is widely expected to cut its base rate for the third time this year, and the prospect of cheaper finance will be welcomed by developers who are struggling to square their finance costs with weak demand for their end product.
“The one bright spot is commercial sector construction. While it too saw output fall in July, at least more commercial schemes are being greenlit. Those that do are laser-focused on value and have a fully costed business case - there is minimal margin for error.”
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