Survey finds construction sector was hit hard in the run up to the EU ref

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19th July 2016 11:15 - Construction

Survey finds construction sector was hit hard in the run up to the EU ref: Recent figures have revealed that construction workers in Britain have seen their worst performance for seven years, with construction firms being hit by a slump in new orders in the lead up to the EU referendum.Survey finds construction sector was hit hard in the run up to the EU ref

An economist said that industry’s prospects are poor, after property investors were deterred from investing due to the prospect of the UK leaving the European Union, which the public ultimately voted for.

Many of the jitters within the housing market were attributed to the decrease in activity, which resulted in house builders all over the United Kingdom mothballing projects and putting down their tools.

Recently shares in some of Britain’s largest property developers and builders slumped, as property investors came to terms with the depressing implications for profits and revenues that a freeze in new home building would have, following the completion of the last batch of projects.

Property developer, British Land, was discovered to have experienced the largest fall in shares, falling more than 7 per cent to 564p. Similarly, Persimmon, Taylor Wimpey, Barratt Developments and Berkeley Group Holdings all fell by 6 per cent each.

The day after the European referendum took place, shares immediately began to plummet, as it became apparent that property investors were withdrawing funds which were originally destines for new property developments.

According to figures, the Markit Cips construction purchasing managers’ index dropped to 46 in June, down from 51.2 in May. June’s figure marks the first time that the index was below 50 since April 2013.

The speed that the fall took place in June took the construction industry back to recessionary realms, however, it was not as significant as that of the quick decline after the financial collapse in 2009.

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