The latest S&P Global / CIPS UK Construction PMI data has shown that while construction activity in the UK has increased fractionally since July, it remains below the no-change mark which, according to the report, signals a reduction in construction activity over the month.

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Andrew Harker, economics director at S&P Global Market Intelligence, said: "The UK construction sector looks set to be in for a challenging period. 

“Not only did construction activity fall for the second month running, but a range of indicators from the survey pointed to further weakness ahead.”

In response to the latest PMI data, Brian Berry, chief executive of the FMB, said: “As the cost of living crisis deepens, consumers are cutting back, but builders also face increased costs on materials — this creates a difficult and clearly damaging situation.

“Bold solutions are required by the new government under Liz Truss.

“Delivering a UK-wide retrofit strategy to improve the efficiency of the nation’s homes would be a huge boost for local builders and local economies alike, and it would also cut homeowners bills and help ensure the UK’s energy security.

“More immediately, we urge the government to remove VAT on repair, maintenance and improvement work so that savings can be passed on to cash-strapped consumers."