Construction activity falls for sixth consecutive month

Construction activity fell for the sixth month in a row in August, according to the CIPS/Construction Purchasing Managers' index.

The Times reported that construction activity measured 40.5 in August, slightly higher than July's low of 36.7.

Any score lower than the neutral mark of 50 indicates that the market is contracting.

Housing construction was the worst-hit area. Civil engineering fared better, with only a slight decline in activity.

Commenting on the figures, Roy Ayliffe, director of professional practice at CIPS, said: "Although the latest data suggest that the rate of contraction is easing, conditions remain relatively depressed overall.

"With far fewer new business opportunities to pitch for, purchasing managers said competition between firms intensified, which, in turn, lowered the values of tenders."