Blow to British builders.

ACTIVITY in the building industry sank to its lowest level for nearly a decade last month, a report said.

The Chartered Institute of Purchasing and Supply said its Construction Purchasing Managers' Index - which measures overall industry performance - registered 46.1 in April.

This was the weakest reading since December, 1998. A figure of 50 represents growth.

Last month's measure was down from March's figure of 47.2, which signalled the first contraction for the industry in more than six years.

The further deterioration came as optimism in sector growth over the coming year eased to its lowest level since October, 1998, dropping to 60.1.

Weak economic conditions in the UK, especially in the slowing housing market, and reduced tendering opportunities have been blamed for the drop.

All three sectors of the industry - housing, commercial construction and civil engineering - reported falling activity last month.

April saw incoming new work drop for only the third time in the survey's history.

But the new orders index edged up from March's record low of 48.9 to come in at 49.1, pointing to only a weak contraction in orders received.

Soaring prices for metals and oil have also piled inflationary pressures on the building industry