Construction output, new business and employment all rose at slower rates than in the previous month, signalling the slowest rate of growth for seven months.

The latest Markit/CIPS UK Construction PMI index recorded slipped to 55.3 from 58.8 in October. Aside from the pre-election slowdown seen in April, overall output growth was  its weakest for almost two-and-a-half years amid a sharp loss of housebuilding momentum.

Tim Moore, Senior Economist at Markit, said: “The UK construction recovery is down but not out, according to November’s survey data.

“Residential activity lost its position as the best performing sub-category, but a supportive policy backdrop should help prevent longer-term malaise.

“Strong growth of commercial construction was maintained in November as positive UK economic conditions acted as a boost to new projects, while civil engineering remained the weakest performer.

He added: “Overall the latest results suggest that construction companies have become a little more cautious towards year-end, especially in terms of job hiring.

But Moore said”  “A healthy flow of new tenders from public and private sector clients is expected to provide a tailwind to growth heading into 2016.

“Reflecting this, UK construction firms were again overwhelmingly positive about the outlook for their business activity, while only a small proportion anticipates falling output levels during the next 12 months.”

David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said: “Though there will inevitably be some disappointment that last month’s strong activity has largely petered out, the sector still operates in a positive environment of low interest rates, low inflation and lower commodity prices which has been reflected by respondents’ continued optimism for a good future.”

“Suppliers continued to struggle this month, citing shortages in key materials, supply chain capacity and skilled capability as the causes.

“But there is a question mark over the coming months as the housing sector, normally the star performer, may drag back on recovery along with the lack of availability of skilled staff.

“Many firms were forced to use more expensive contractors and, further combined with the hoped-for continued job growth failing to materialise, this may leave commentators wondering what’s next.”