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Output continued to remain stuck in reverse with optimism about upcoming workloads at its weakest since December 2022.

The S&P Global UK Construction Purchasing Managers Index edged up to 45.5 in August, from the 44.3 score record in July 鈥� which was the sharpest rate of decline since May 2020.

But S&P said: 鈥淭he index was still well below the neutral 50.0 value and indicative of another solid decline in overall construction output.鈥� It was the eighth month in a row showing output had fallen.

They were further declines in residential (44.2) and civil engineering activity (38.1) although commercial saw a shallower fall of 47.8.

The index added: 鈥淐onstruction companies widely commented on challenging market conditions, intense price competition and headwinds from sluggish UK economic activity.

鈥淟ower volumes of output and incoming new work led to hiring freezes and the non-replacement of departing staff in August.鈥�

It said that employment numbers have fallen throughout the year with last month鈥檚 figure the sharpest decline since May.

>> See also: Slowly does it: where is this elusive growth for construction?

S&P鈥檚 economics director Tim Moore said: 鈥淭he proportion of panel members expecting a rise in output over the year ahead was 34%, down from 37% in July and lower than at any time since December 2022.鈥�

The performance of housebuilding continues to worry many and Joe Sullivan, partner at accountant MHA, said: 鈥淲hile major infrastructure projects like the Lower Thames Crossing remain a positive driver, the overall outlook for the property market is being suppressed by a combination of policy uncertainty and heavy taxation.鈥�

The one bright spot was the performance of commercial which has stabilised in recent surveys. 鈥淐ommercial schemes with a clear business case and robust costings are still being approved, but developers and investors are cautious, and value is key,鈥� said Gareth Belsham, director of Bloom 微密圈 Consultancy.