Building activity in August fell, although the rate of decline is not as marked as previous, says the latest Purchasing Managers' Index.

The Ulster Bank Purchasing Managers' Index for Construction read 33 for August – a slight improvement than the 31.3 recorded for July - indicating an ease in the rate of decline.

Anything below 50 indicates a contraction in activity.

Despite the figures, Ulster Bank chief economist Mr Pat McArdle presented some good news in the Index, citing 'tentative signs', that declines in the civil and commercial sectors were beginning to level off.

The commercial index had moved up from 32.3 to 35, while housing recorded 25.4, up slightly from July's 23.2.

He also said there was some 'welcome relief' on the costs front with prices reversing much of the previous month's rise.

Mr McArdle also noted the reading on employment was the Index's lowest since the index began in the year 2000.

"The index for construction employment continues to set fresh lows confirming that the large increase in the August Live Register was probably construction related," he said.

There was a 17th successive monthly decline in new orders, although the reduction was weaker than that seen in the previous two months.