LONDON, Sept 6 Reuters British construction firms suffered a sharp drop in orders in August, adding to concerns about a slowing economy amid rising interest rates, a survey showed on Wednesday.

The SP GlobalCIPS UK Purchasing Managers39; Index for the construction industry fell to 50.8 in August, remaining in growth territory but down from 51.7 in July.

The reading was slightly above the forecast of 50.5 in a Reuters poll of economists.

Tim Moore, Economics Director at SP Global Market Intelligence, said the decline in recent months in residential housebuilding was the steepest since early 2009 excluding the COVID19 lockdown period, although August39;s figure was slightly above a low struck in June.

Builders cited weaker economic conditions, cutbacks to new building projects and local planning delays as factors holding back housebuilding activity.

Britain39;s housing market has slowed in recent months against the backdrop of the Bank of England39;s 14 consecutive interest rate rises and a prolonged costofliving crisis, with indicators of buyer demand and house prices sliding.

SP said total new orders for the construction sector fell at the fastest pace since May 2020.

In contrast to housebuilding, commercial building and civil engineering activity grew in August, albeit at a slower pace than in July.

Resilient demand for commercial work and infrastructure projects are helping to keep the construction sector in expansion mode for now, Moore said.

However,…