UK construction shrinks at fastest rate on record

December saw the fastest contraction in the UK construction sector since records began more than 10 years ago.

The latest figures from the Chartered Institute of Purchasing and Supply/Markit (CIPS) construction index showed a fall to 29.3 from 31.8 in November.

Any score below 50 indicates a contraction. December's figures show the tenth consecutive month that the index has shown a score below 50.

"Further falls in global demand resulted in the most severe retrenchment in the PMI's eleven year history," said Roy Ayliffe, director at CIPS.

"Once again, the housing sector bore the brunt of the crisis as purchasing managers reported significant reductions in new business."