Construction sector cuts jobs at record pace

Jobs were lost at a record rate in the construction industry during September, according to the latest figures.

The Chartered Institute of Purchasing and Supply (CIPS) survey for the construction industry in September showed the highest level of job losses since the series began in 1997.

Sharper falls in housing activity, commercial activity, new orders and employment were all recorded during the latest survey period, taking the index to 38.8 in September, from 40.5 in August.

Anything below 50 represents a contraction and the sector has been shrinking for seven months now.

Price inflation is still high but has fallen further since its June peak, the survey showed.

Unsurprisingly, confidence within the industry is also at a series low, CIPS said.

Roy Ayliffe, director of professional practice at CIPS, said: "As the volatility of the world's financial markets reached fever pitch in September, purchasing managers reported a fall in activity levels throughout the UK construction economy, as companies laid off staff at a considerable pace and sharply reduced buying activity."

The Office for National Statistics said in a separate release private housing orders fell by 48 per cent over the three months to August, compared to last year.

Overall, construction orders were down by 18 per cent over the year.

Figures from the British Bankers' Association for August showed mortgage lending has fallen dramatically as buyers choose to hold off until prices stabilise, while tighter lending conditions are making it difficult for the few who are keen to buy to secure finance.