Activity in the UK construction sector fell sharply in September according to the latest IHS Markit/Chartered Institute of Purchasing and Supply (CIPS) survey monitored by Kallanish. Business activity fell for first time in 13 months with the severest drop in civil engineering work since April 2013. New orders and input buying also fell in the month.

The seasonally adjusted IHS Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) registered 48.1 in September, down from 51.1 in August and below the crucial 50.0 no-change threshold for the first time in 13 months. The latest reading signalled the fastest decline in overall construction output since July 2016.

Lower volumes of construction work reflected marked falls in both steel-intensive commercial and civil engineering activity during September. The reduction in civil engineering work was the steepest for almost four-and-a-half years, which some firms linked to a lack of new infrastructure projects to replace completed contracts, Markit/CIPS says.

The latest decline in work on commercial development projects was the second-sharpest since February 2013 (exceeded only by the post-EU referendum dip seen last July). Survey respondents widely commented on a headwind from political and economic uncertainty, alongside extended lead times for budget approvals among clients.

Input buying decreased for the first time in six months. Construction companies continued to face headwinds from rising input costs, with higher prices for imported materials helping to drive up inflationary pressures to a seven-month high.