GROWTH of UK construction activity slowed further in May, according to a regular survey which has proved much more upbeat than official data on the sector's recent performance.
The Chartered Institute of Purchasing and Supply's (CIPS) UK construction activity index fell from 55.8 in April to 54.4 in May on a seasonally adjusted basis.
Although this signalled a further slowing of construction growth, the index stayed well above the level of 50 considered to separate expansion from contraction.
The survey also showed a sharp slowing of growth of new construction orders.Confidence about prospects for the year ahead showed its sharpest monthly fall since June 2010, the month of Chancellor George Osborne's first Budget.
CIPS's survey had pointed to a strong performance by construction in the opening three months of this year but official data showed a 4.8% quarter-on-quarter plunge in construction output. This weakness in construction played a part in a 0.3% slide in overall UK gross domestic product in the first quarter.
The slide in GDP followed a 0.3% fall in the fourth quarter of 2011, and put the UK back in recession.
According to CIPS, housebuilding activity grew only modestly in May. Commercial property construction activity showed the strongest growth of the three sub-sectors surveyed, with expansion of civil engineering slowing sharply but remaining stronger than that of housebuilding.
CIPS' survey showed a slight acceleration of construction sector recruitment, although this remained modest.
Tim Moore, senior economist at survey author Markit, said: "While still in positive territory, the month-on-month fall in business confidence was the greatest since June 2010.
"This reassessment of the year-ahead outlook represents worries within the construction sector that weakening economic conditions could leave firms running on empty again once existing projects have come to completion."
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