HOUSEBUILDING activity in Britain and Northern Ireland grew at its slowest pace for more than three years in March, as economic uncertainty dragged on the construction industry.
The closely watched Markit/CIPS construction purchasing managers' index showed that expansion in housing activity was at its weakest level since January 2013.
Overall, the survey said growth in the construction industry was 54.2 in March, unchanged from February when it hit a 10-month low. A reading above 50 indicates expansion.
Companies said uncertainty surrounding the outlook for business had dealt a blow to client spending, leading to the weakest rise in new work since the pre-election slowdown in April 2015, according to the report.
It said the rate of employment growth also fell to its slowest pace since June 2013, as firms were cautious about bolstering their workforces.
Meanwhile, the number of companies using sub-contractors fell at a slightly steeper pace than in February, while the increase in purchasing activity was at its weakest since April 2015, the study said.
It added that input cost inflation eased for the second month running to its weakest level for more than six years.
Tim Moore, senior economist at Markit, said the industry was facing its "weakest growth phase since the summer of 2013".
He added: "Residential building has seen the greatest loss of momentum through the first quarter of 2016, which is a surprising reversal of fortunes given strong market fundamentals and its clear outperformance over the past three years.
"Construction firms were reliant on a rebound in commercial building and resurgent civil engineering growth to offset the slowdown in housing activity. Civil engineering delivered its strongest performance for just over a year, suggesting that a healthy pipeline of infrastructure projects continues to boost construction output.
"However, heightened uncertainty about the business outlook appears to have weighed on overall construction demand so far in 2016, with survey respondents citing cautious client spending patterns and a reduced willingness to commit to new projects."
