The construction industry is still growing but the rate of expansion has slowed down.

The latest figures for the month of August from the Chartered Institute of Purchasing and Supply (CIPS) show a significant slowdown. The construction activity index fell to 56·3 from July's 59·9.

While August's figures represent the thirty-first successive monthly increase, according to CIPS "procurement levels increased at a lower rate as purchasing managers reduced buying in line with reduced overall activity".

While a rise in new orders meant activity was up overall, the rate of increase of new contracts fell to its lowest level for nine months.