It suggests that SME construction firms are struggling to maintain their workload as economic conditions deteriorate. Tighter credit markets and a slowing housing market are beginning to take their toll.

The balance of companies who had more work than in the previous survey fell into negative territory for the first time since Q2 2006. It dropped to -8 from +6 in Q4 2007.

Double-digit negative balances were reported for all of the housing sectors. The lowest balance of -38 was recorded for the private RM&I workload. Social new housing was the strongest housing sub-sector but its balance was still -17.

There is considerable variation across the regions. Indicators were strong for the North West, South West and Wales but in Northern Ireland the industry was fragile.