The UK construction sector saw a mild expansion in activity in August, according to survey data, but the slump in housebuilding continued.
The S&P Global/CIPS UK construction purchasing managers' index fell to 50.8 points in August, from 51.7 in July, but remained above the 50-point mark that separates expansion from contraction.
S&P Global, noted "divergent trends" across the three main surveyed categories. Commercial building expanded at a "robust" pace, with a PMI of 54.2, while civil engineering grew, but at a somewhat slower pace, with a PMI of 54.2.
But, housebuilding continued to contract, with a PMI of 40.7, the second-fastest downturn since May 2020.
"Survey respondents widely commented on subdued market conditions and a headwind to activity from cutbacks to new build projects," S&P Global said.
"Resilient demand for commercial work and infrastructure projects are helping to keep the construction sector in expansion mode for now, but the survey's forward-looking indicators worsened in August," warned S&P Global Market Intelligence economics director Tim Moore.
New orders fell at the fastest pace in over three years as respondents cited concerns over the macroeconomic outlook and the effects of high interest rates. The degree of positive sentiment was the lowest recorded since the beginning of 2023.