UK construction sector shrinks

The UK construction sector shrank for the seventh month in a row in September, as a result of the fastest slide in commercial activity since records began.

Last month, the Chartered Institute of Purchasing and Supply (Cips)/Markit construction index fell from 40.5 in August to 38.8, reported Reuters.

Cips director Roy Aycliffe said the findings were proof the UK economy was now in a recession that it was likely to be difficult to recover from.

"Although there were promising signs in August of an end to the downward trend in the key indexes, September figures showed a renewed slide," he said.

Housing activity also experienced sharp declines in September, as did new orders, employment, sub-contractor usage and purchasing activity.

The Guardian reports that demands for the Bank of England to make a cut in interests rates are growing as businesses try and cope with the economic slowdown.