Britain's construction sector grew at its slowest rate in three-and-the-half years in May as civil engineering activity dropped and residential construction stagnated, a survey showed yesterday.

The Chartered Institute of Purchasing and Supply (CIPS) said its construction purchasing managers' index fell to 52.6 in May from 54.8 in April - the third month in a row the pace of growth has slowed.

A figure of above 50.0 represents growth and one of below 50.0 represents a contraction.

Civil engineering activity scored 47.9, a turnaround from last month when the sector had grown.

Residential housing construction contracted modestly for a third straight month, at 49.9 compared with 48.9 in April.

"Only strong growth in the commercial sector sustained overall expansion, with civil engineering down and housing activity stagnant," said Roy Ayliffe, director of professional practice at CIPS.

"Despite the sluggish data, panellists remained confident about the future of the UK construction industry, due to the confirmation of large projects and the expectation of increased opportunities to tender in the coming year."

Future business activity scored 76.3, the highest since February.