Wolseley set to axe 2,000 US jobs

The housing market is a key barometer of the US economy

Building material supplier Wolseley is axing about 2,000 US workers because of a housing market slowdown in America.

The firm, known in the US for its Ferguson and Stock brands, said most cuts would come through shop closures.

The news came as it said pre-tax profits for the five months to December were 14% lower than last year.

Wolseley also warned interest rate rises may hit the confidence of would-be homebuyers in its UK market.

The world's biggest supplier of plumbing and heating equipment had previously said its results would be hit by a weak US performance.

Looking ahead, it warned that the North American market remained uncertain.

The number of new US homes being built is at a six-year low, following spectacular growth of the past couple of years.

Successive interest rate rises since 2005 have dampened the market, as has a slowdown in the economy, analysts have said.

The job cuts are on top of another 2,000 announced in November. Of the 4,000 total, 3,500 will be in its core building materials division with 500 made redundant at the Ferguson plumbing business.