Growth in Britain's construction business slowed slightly in December but the sector still retained its shine, a key monthly survey said today.
The Chartered Institute of Purchasing and Supply (CIPS) said its purchasing managers' index for the sector dropped to 59.2 last month from 60.5 in the previous month - the highest since June 2001.
The fall was caused by delays between the completion of existing and the start of new contracts, the report said.
Despite the slowdown, the index remained well above the critical no-change mark of 50 that divides growth from contraction for the 59th successive month.
"Purchasing managers continued to scale up their purchasing activity in December, as the construction sector experienced further strong growth," said Mr Roy Ayliffe, CIPS's director of professional practice.
"This expansion was largely driven by increased levels of new business, as confidence picked up the UK economy."
The construction sector is being watched closely by the market after its contribution to overall economic growth has increased markedly.
Over the quarter as a whole, growth of construction activity during the final three months of 2003 was the sharpest since the second quarter of 2000, the report said.