This month's CIPS/Markit Purchasing Managers’ Index shows a further decline in the construction sector amid more positive economic news in other economic data such as house prices.

Following on from last month's figure of 47.7, September activity showed a modest drop to 46.6. Input prices continued to fall because of competition amongst suppliers, and there was only a modest fall in new orders so confidence remains generally high.

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David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said: "The UK construction sector continued to be heavily impacted by the recession as it deteriorated at its fastest rate since June. Though the industry is not contracting as quickly as it was earlier in the year, firms are struggling to adjust to comparatively low levels of activity, as reflected by employment levels which took another hefty hit and have dropped consecutively for sixteen months.

"One of the few glimmers of hope appeared in the housing sub-sector which registered a marginal rise in activity for the first time in twenty-two months. Moreover, as commercial and civil engineering showed further signs of decline, this collectively highlights the volatility of the UK construction industry."

(CD/KMcA)