The 0.4% fall in output recorded in the General Election month of July curtailed the early summer recovery, which saw a 1.7% increase in May and 0.5% rise in June.

Small falls in activity were seen in both new work (-0.2%) and repair and maintenance (-0.7%).

At the sector level, the drag on growth came from private commercial new work and private housing repair and maintenance, which fell by 2.4% and 1.7%, respectively.

Across the UK as a whole only manufacturing and construction sectors recorded falls in activity.

Clive Docwra, managing director of construction consultancy McBains, said: “After May and June’s figures showed an increase in output, the construction industry was expecting better news for July.

“Despite a modest overall decrease in growth, the industry will flag a dip in growth in five of the nine work sectors as a concern, particularly the 2.4% drop in private commercial new orders.

“Although the figures may not show a post-election bounce, the optimism created by the new government’s announcements on housebuilding means the industry is feeling optimistic for the medium term, borne out by today’s figures showing output grew 1.2% in the three months to July.

“Some early signs of intent from the government on how issues such as confirmation of how nationals planning frameworks can be streamlined, and measures to boost growth in the Budget, will further bolster confidence.”