Construction falls fastest in 11 years

UK construction activity suffered the biggest monthly fall for the past 11 years this June, according to the Chartered Institute of Purchasing & Supply (CIPS).

Last month’s drop in overall construction activity was the largest since the CIPS construction purchasing managers index began in April 1997, and the fourth consecutive monthly fall.

The score for construction activity fell from 43.9 in May to 38.8 in June.

The CIPS housing activity index dropped to 25.6 in June from 32.7 the previous month, also the lowest reading on record.

Both other industry sub-sectors registered slumps as well, with commercial activity down from 43.6 to 41.1 last month and civil construction down to a new record low of 40.0 from 52.5 in May.

The news came as Britain’s biggest housebuilder Taylor Wimpey announced it was axing 900 jobs in the UK to cope with the downturn.