Construction activity decline sharpens

Construction activity has dropped at its sharpest pace in a decade as the credit crunch takes its toll.

The Chartered Institute of Purchasing and Supply’s construction Purchasing Manager’s Index fell to 43.9 in May from 46.1 in April. Any reading below 50 signals a contraction.

It was the third consecutive month of decline and the weakest reading since 1997.

Housing activity fell to 32.7 from 40.3.

The only sub-sector that registered an improvement was civil engineering.