The decline in orders in the construction sector eased in July to the slowest pace for over a year and a half, according to figures released by the Chartered Institute of Purchasing and Supply (CIPS).

The CIPS index posted a reading of 47 in July, an increase from 44.5 in June. Although the increase is modest, the sector reported contraction at the slowest level in sixteen months.

"Optimism is returning to the UK construction sector on the back of a perceived improvement in economic conditions. Whilst the current situation still looks very bleak, an upturn looks much closer than it did just a few months ago," said David Noble, Chief Executive Officer at the CIPS.