UK construction sector activity was down 10.1 per cent in the year to July, official figures from the Office for National Statistics (ONS) said.

The three months between May-July also saw a drop in output of 10 per cent YoY, the ONS data showed.

But the ONS said that it was important to bear in mind that May's activity was higher than usual because a bank holiday was moved to June.

In June there were two extra days' holiday for the Queen's Diamond Jubilee leaving output unusually depressed.

The ONS said that it was worth noting that the volume of construction output increased by 2.2 per cent between June and July 2012 when the country returned to normal working patterns.

The ONS said the Olympics and Paralympic Games did not have a strong effect on these figures as they started at the end of July, although the build-up to the events, for example in rising numbers of tourists, may affect other economic data.