Housebuilding slump

THE UK construction sector grew further last month but its recovery lost some momentum due to a slump in housebuilding.

Firms also reported a slower rise in new orders, with some blaming uncertainty in the run-up to the General Election. The latest S&P Global construction purchasing managers' index (PMI) scored 52.2 in June, down from 54.7 in May.

Any score above the 50.0 threshold indicates that activity in the industry is increasing, while anything below means it is shrinking.

The sector was therefore still growing but was also notably weaker than the 54 reading predicted by a consensus of analysts.

Andrew Harker, economics director at S&P Global Market Intelligence, said: "Continued growth of the UK construction sector in June meant that the sector has recorded sustained expansion throughout the second quarter of the year.