UK construction activity slumps in July - CIPS

LONDON, Aug 4 (Reuters) - British construction activity fell at a record pace in July, a survey showed on Monday, in a further sign that the sector is weakening sharply in the wake of the credit crunch.

The Chartered Institute of Purchasing and Supply's construction PMI fell to 36.7 last month -- the weakest reading since the survey began in 1997 -- from an initially reported 38.8 in June. Any reading below 50 signals contraction.

The housing sub-index fell to a series low of 18.7 in July, the eighth consecutive fall.

'Housing was again the sick man of the industry, as levels of activity plunged to a record low,' Roy Ayliffe of CIPS said.

'July marked an end to constructors' optimism about recovery, as spirits were knocked by the persistent and rapid decline in new business and activity.'

by Matt Falloon

Source:http://uk.biz.yahoo.com/04082008/323/uk-construction-activity-slumps-july-cips.html