According to the latest Purchasing Managers' Index (PMI) produced by the Chartered Institute of Purchasing and Supply (CIPS) in conjunction with Markit, users of brick tools saw new orders continue to increase through July.

Last month's reading on the PMI was 54.1 - down from June's level of 58.4 - but there are still indications of strength in the industry, the report said.

For the fifth consecutive month, UK construction companies noted a rise in new orders, which supported the growth of the sector.

David Noble, chief executive officer at the CIPS, commented: "We're finally starting to see the growth in activity tail-off and normalise at a slightly slower rate"

Residential house building was the most successful sub-sector in July, while commercial work expanded at a quicker pace than civil engineering.

This comes after James Roberts, head of real estate consultancy Knight Frank, said that there would be a recovery in the private property market, with lower demand for the assets simply a "pause for breath".

Posted by Jonathon Gordon