Britain's construction sector contracted again in October for a 20th successive month and the rate of decline accelerated for a second month in succession amid shrinking demand for commercial and civil engineering work, according to new figures from the Chartered Institute of Planning & Supply.

The CIPS/Markit purchasing managers index fell to 46.2 in October, from 46.7 in September, and the survey showed that the pace of job cuts had accelerated while input costs were rising, adding to the sector's woes.

David Noble, the CIPS chief executive, said: “These continue to be worrying times for the UK construction sector. Further drops in commercial and civil engineering activity were the key drivers behind the bad news."

“Perhaps of most concern is the continued slashing of jobs at construction firms. The pace of job cuts actually accelerated in October as the current state of the sector means that many who have lost jobs will struggle to find something else before Christmas.”

On the positive side, residential construction activity continued to rise for a second successive month and across the whole sector, new orders held at steady levels since September, ending a 19-month period of decline, while optimism over further business prospects remained high.

Staffing levels in construction companies fell in October and a raft of redundancy programmes meant that the pace of job cuts accelerated.

Meanwhile, input prices for firms increased in October for the first time in a year, as a result of higher fuel prices and unfavourable exchange rate movements.

Sarah Ledger, economist for Markit, said: “Compared with data recorded at the height of the downturn, the current fall in UK construction sector activity remained relatively modest."

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