British construction purchasing managers' index (PMI) dropped to 57.1 in July 2015 from June's four-month high of 58.1, said Markit Economics Limited Tuesday.
The index was lower than the market expectation consensus of 58.5, though it has registered the 27th month of exceeding the 50.0 activities expansion threshold.
July data signaled a slight overall loss of momentum across the UK construction sector, with business activity and incoming new work both expanding at slower rates than in the previous month, said the London-based data compiler.
Data showed that residential building remained the fastest growing broad area of the construction sector, but it also saw the greatest loss of momentum since June. Civil engineering activity expanded at a slower pace last month, while commercial projects activity rose at the fastest rate since March.
The pace of job creation at construction companies remained strong in July, while ongoing skill shortages across the sector contributed to a further steep reduction in sub-contractor availability, said Markit.
Tim Moore, senior economist at Markit, commented:" July's growth slowdown is the first for three months and perhaps a sign that the post-election impact on construction confidence has started to diminish."
Commercial activity was the key growth driver last month. Sustained growth across Britain's economy so far this year has firmed up demand for commercial building work, with construction companies noting a particularly strong appetite for new development projects among clients, he added.