By Marcus Leach

Figures released today by the Office for National Statistics (ONS) have shown that factory gate inflation eased to the slowest pace in nearly three years in July.

This indicates that price pressures in Britain are easing, as the decline in construction activity slowed.

Key points from ONS data:

- The total volume of construction output in the second quarter of 2012 fell by 3.9 per cent compared with the first quarter of 2012 (constant (2005) prices, seasonally adjusted)

- The total volume of construction output in the second quarter of 2012 fell by 9.5 per cent compared with the same quarter in 2011 (constant (2005) prices, seasonally adjusted)

- The volume of all new work fell by 4.6 per cent and repair and maintenance fell by 2.7 per cent compared with the first quarter of 2012 (constant (2005) prices, seasonally adjusted)

- The volume of all new work fell by 12.8 per cent compared with the same quarter in 2011 while repair and maintenance fell by 2.8 per cent (constant (2005) prices, seasonally adjusted)

- There were widespread falls in the volume of construction output in the second quarter of 2012 when compared with the first quarter of 2012. There were falls in eight of the nine sectors, with the largest decrease in new infrastructure, which fell by 8.6 per cent (constant (2005) prices, seasonally adjusted)

- The movement of the late May 2012 bank holiday to June 2012, the additional bank holiday for the Queen's Diamond Jubilee and the unseasonal weather were likely contributing factors to the decline in the construction sector in the second quarter of 2012

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