Decline in construction a 'worry for investors'

New research has shown that the rate of decline in the UK's construction sector accelerated again last month.

The Chartered Institute of Purchasing and Supply (CIPS) claimed that there is a possibility the recession will be w-shaped – something which could concern commercial property investors.

CIPS's latest purchasing managers index for the construction sector fell from 45.9 in May to just 44.5 in June – moving further from 50, which denotes neither growth or contraction in the industry.

The decline followed three consecutive monthly increases in the index, and the figure is still above the record low of 27.8, which was reached last year.

David Noble, chief executive officer of CIPS, said: "Against the backdrop of difficult market conditions, the UK construction sector is on a knife-edge."

"After the improvements [slower rates of decline] seen in April and May, the sector has retracted as firms battle to consolidate their position," he added.

However, investment in commercial property in the capital rose for the first time in two-years, according to Cushman & Wakefield.