UK construction activity slows to 'near stagnation'

Activity in the UK construction sector slowed to "near stagnation" in September, a closely-watched survey has suggested.

The Markit/Cips construction purchasing managers' index (PMI) fell to 50.1, just fractionally above the 50 "no-change" threshold that separates expansion from contraction.

In August, the index had read 52.6.

Markit said fewer new orders was the reason behind the slowdown, but added that staffing levels rose slightly.

Confidence in the sector remained relatively subdued, the research group said.

Also on Tuesday, builders' merchant Wolseley announced a return to full-year profit but said recent weaker economic forecasts were likely to have an impact on its markets.

On Monday, Markit/Cips data showed surprise growth in the manufacturing sector.