Housebuilders were among those hardest hit on Monday as weak economic data sent the FTSE 100 into retreat.

Shares in some of the biggest housebuilders recorded sharp falls with Barratt closing down 3.1%, Berkeley Group falling 4% and Taylor Wimpey 4.5%.

The market was impacted by the Markit/CIPS UK manufacturing purchasing managers’ index which fell to levels last seen since February 2013. The figures, which shine a light on the strength of the manufacturing sector, were worse than had been expected.

The FTSE 100 fell by 0.45%. 

Other significant fallers included energy stocks amid renewed weakness in oil prices.

Barclays shares also fell 2% and RBS 1.7% after stress tests from the European Central Bank exposed potential weaknesses in the event of a severe recession.