The Office for National Statistics says orders in the quarter to the end of August were down by 18% on the same quarter in 2007, with the drop led by sharp falls in orders for private housing.

The seasonally adjusted figures show that the value of private housing orders, at £912m, was around half that for the same period in 2007.

Private non-housing orders also fell, by 39% on the same quarter last year, and by 30% on the previous three months, to £2.59bn.

Overall order figures were buttressed by large increases in orders for infrastructure works - up by almost 60% on the same period last year to £1.36bn. Orders for the 12 months to August were 7% lower than the previous year.