Tuesday 2 August 2016 11:14 am

Housebuilders' share prices suffer after construction output falls

The post-Brexit vote rollercoaster for UK housebuilders is getting a bit predictable.

After disappointing construction data was released this morning – albeit not as bad as expected – the big housebuilders' shares have taken a hit once again.

Read more: Construction output tumbles at fastest pace since 2009

At time of writing, Berkeley Group's share price was down 1.13 per cent, Barratt Developments' share price fell 0.8 per cent, Persimmon's share price fell 1.34 per cent, and Taylor Wimpey's share price was down 0.74 per cent.

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Construction material provider Travis Perkins topped the FTSE 100 fallers; its share price fell 2.98 per cent after it said in a trading update that it had been hit by Brexit.

"Our two-year like-for-like sales growth in July was below the levels we experienced in the second quarter, however we saw gradual improvement through the course of the month," said John Carter, Travis Perkins' chief executive.

Read more: This construction supplier has been hit by the Brexit vote

Data released this morning show that construction output in July fell at its fastest pace since 2009, down from the levels reported in June.

Markit, which conducted the survey with the Chartered Institute of Procurement and Supply, said: "The latest reading signalled the fastest overall decline in construction output since June 2009. This largely reflected the steepest fall in commercial building for over six-and-a-half years, alongside a drop in civil engineering activity for the first time in 2016."