Construction output fell in June dragged down by a fall in housebuilding, according to the S&P Global UK Construction PMI report.
Its seasonally adjusted activity index posted a mark of 52.2 last month, down from 54.7 in May. A mark above 50.0 indicates growth.
Home building firms were the only sector to record lower levels of work with “output falling solidly following a first increase in 19 months during May”.
The main growth driver continued to come from commercial activity, which again increased “markedly” in June, although the pace of expansion softened from May’s two-year high.
A slower increase in civil engineering activity was also recorded, with output up modestly.
Overall, construction remained in positive territory for the fourth month in a row, “signalling a sustained improvement in overall construction activity in the UK, albeit with the pace of growth softening from the previous month”.
The report adds that “activity reflected the securing of new contracts during the month.
“Data on new orders showed a fifth consecutive monthly expansion amid successful tendering and a rise in client activity.
“That said, the rate of growth in new business was only modest and the slowest since February.”
S&P Global Market Intelligence economics director Andrew Harker points out: “Continued growth of the UK construction sector in June meant that the sector has recorded sustained expansion throughout the second quarter of the year.
“While there were signs of a slowdown in the latest survey period, most notably around housing activity, firms indicated that a slowdown in new order growth was in part related to election uncertainty.
“We may therefore see trends improve once the election period comes to an end.”
Beard finance director Fraser Johns adds: “Such is the UK construction sector’s continued growth, even renewed challenges in house building – which can often have a dragging effect on output as a whole – wasn’t enough to halt its expansion.
“And while this general election period has naturally had an impact on new order volumes – as some clients wait to see the outcome and the lay of the land – we still saw growth [on orders] for a fifth consecutive month.”
