Orders in the construction industry fell 6% in the three months to July compared with the previous three months and 11% compared with the same period last year, showing a distinct slowdown ahead of the terrorist bombings in America.

Orders in all sectors fell, apart from public non-housing. Private commercial orders were 3% down on the previous three months and 18% lower than in the same period last year.

Housing starts were down 1% on a year ago and completions were down 6%.

In the year to the end of June construction output was much the same as it had been a year earlier with a fall in new build being offset by an increase in repair, maintenance and improvement work.