Housing rebound weakens

A SHARP slowdown in housebuilding sapped construction growth during August, an industry survey showed yesterday.

The Chartered Institute of Purchasing and Supply's (Cips) latest activity index - where a score over 50 signals growth - fell to 52.1 from 54.1 in July, the third monthly fall in a row.

Housebuilding saw much weaker growth than commercial construction and civil engineering, fuelling fears that the sector's strong rebound since the recession is losing steam.

Cips chief executive David Noble forecast low growth rather than a return to recession, but added: "Those looking for signs of a slowdown will find plenty to worry about."