LONDON, July 4 Reuters Growth in British construction activity slowed in June as housebuilding declined, according to a survey on Thursday that showed a slowdown in new orders as some firms took a waitandsee approach to Britain39;s July 4 election.

The SP Global UK Construction Purchasing Managers39; Index fell to 52.2 in June from 54.7 in May, below the median forecast of 53.6 in a Reuters poll of economists but still above the 50 threshold for growth.

SP Global said the slowdown in part reflected firms39; uncertainty ahead of Britain39;s national election in which the opposition Labour Party is widely expected to win by a landslide, according to opinion polls.

While there were signs of a slowdown in the latest survey period, most notably around housing activity, firms indicated that a slowdown in new order growth was in part related to election uncertainty, Andrew Harker, economics director at SP Global Market Intelligence, said.

We may therefore see trends improve once the election period comes to an end.

New orders continued to grow, but the increase was the slowest since February.

Activity in commercial construction and civil engineering rose, but Thursday39;s survey showed a renewed fall in residential building work.

Firms reported an increase in employment, with the rate of job creation the fastest since August last year.

The Bank of England which held interest rates at a 16year high of 5.25 last month is closely monitoring wage growth and services…