By Marcus Leach

The British construction sector stagnated in September as the home-building and civil engineering sectors contracted, according to data released on Tuesday.

The Markit/CIPS construction PMI headline activity index fell sharply to 50.1 in September from 52.6 in August, its lowest reading since a contraction in December 2010.

This comes as a blow for the British economy, following Monday's manufacturing figures, that pointed towards growth and a possible delay on quantitive easing.

However, the Bank of England may have their hand forced when it comes to rejuvenating the flagging British economy.

"Activity growth slowed to near-stagnation, with constructors relying on work on existing contracts to support output. This therefore bodes ill for construction activity in the coming months," said Sarah Bingham, an economist at Markit.

"UK construction companies continued to struggle in the face of growing concerns about the wider economy, with weaker client confidence leading to a reduction in new business received during September."

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