GROWTH of UK housebuilding activity eased in October to its slowest pace in 12 months, although it was still sharp, a survey has shown.

And expansion of the broader UK construction sector decelerated to its slowest rate since May, according to the survey published yesterday by the Chartered Institute of Purchasing and Supply.

CIPS's purchasing managers' index for the sector, which measures changes in activity in housebuilding, commercial property construction and civil engineering, fell from 64.2 in September to 61.4 in October on a seasonally-adjusted basis. However, while down significantly, the index remained well above the level of 50 which separates expansion from contraction and thus continued to indicate a sharp rate of growth.

The survey showed the rate of increase of the UK construction sector workforce eased to its weakest in six months in October.

Tim Moore, senior economist at Markit and author of the construction survey, said: "October's survey provides the first indication that the chill winds blowing across the UK housing market have started to weigh on the booming residential building sector.

"Housebuilding activity still increased at a strong pace overall, but the sharp growth slowdown since this summer reflects greater caution towards new development projects amid tighter mortgage-lending conditions and renewed uncertainties about the demand outlook."

Howard Archer, chief UK economist at consultancy IHS Global Insight, said: "It is a bit churlish to call this a disappointing survey as it still points to very strong construction activity compared to long-term norms. Nevertheless, there was a clear easing back."