This, the report issued by S&P Global/CIPS UK says, is the lowest reading seen in four months. Added to this is the fact that business activity expectations are the least upbeat since August 2020.

The residential sector saw the weakest performance, where the activity index dropped from 53.8 in April to 50.7 in May.

S&P Global Market Intelligence director Tim Moore says that residential construction activity, “was close to stagnation in May, which represented its worst performance for two years amid signs of softer demand and a headwind from low consumer confidence.”

Commercial work was once again the strongest sector, moving from 60.5 in April to 59.8 in May.

The report states that overall, higher borrowing costs and “intense inflationary pressures” are factors most likely to hold back growth over the next 12 months.

Naismiths director Gareth Belsham comments: “Housebuilders are more directly exposed to consumer confidence than any other construction sector; and on this evidence, some residential developers are taking their foot off the gas in response to the slowing economy and rising cost of mortgages.

“These concerns have combined to make builders more downbeat about the future than they have been at any time since the lockdown-afflicted summer of 2020.

“Nevertheless, no-one is breaking out the ‘end is nigh’ sandwich boards yet, and there’s still plenty to cheer in this PMI data.

“Building contractors continue to hire staff, and while the prices of raw materials are still rising painfully fast, availability is improving and project delays are easing.

“The improved supply of building materials should take some of the sting out of inflation, but with fuel prices marching upwards again, transport costs will continue to eat into everyone’s bottom line.

“The industry is digging in for a tough second half of the year.”