Growth in UK construction activity slowed in July to its weakest in four months, according to the Chartered Institute of Purchasing and Supply.
Its latest report revealed an index figure of 54.1 compared to 58.4 in June. A figure above 50 indicates a rise and below 50 shows a fall.
Despite the drop, the CIPS said the number didn’t necessarily signal that a double-dip recession was on the way. Sarah Ledger, economist at Markit and author of the report, said: “This was not wholly unexpected, and likely represented a normalisation from the strong rates of expansion recorded in the second quarter.”
David Noble, chief executive of the CIPS, added: “The warning bells aren’t ringing yet and an immediate double-dip seems unlikely. Instead, we’re finally starting to see the growth in activity tail off and normalise at a slightly slower rate.”
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