Construction site
A warning sign is displayed at a Persimmon construction site in Dartford, Britain Neil Hall/ Reuters

Britain's construction sector contracted slightly less than expected in June and the previous month's decline was not as bad as initially feared, data released on Friday (12 August) by the Office for National Statistics (ONS) showed.

Output in the construction sector declined 0.9% month-on-month in June, compared with analysts' expectations for a 1% drop and an unpwardly revised 2% fall recorded in May. The ONS said that the report covered the second quarter of 2016 and the whole of June, meaning it only included data for a short period after the European Union referendum.

"There is very little anecdotal evidence at present to suggest that the referendum has had an impact on output," the ONS said.

Downward pressure came from all new work, which decreased by 0.8%, and repair and maintenance, which fell by 0.5%.

On a year-on-year basis, however, the construction sector contracted more than expected, with output falling 2.2% in June compared with analysts' forecast for a 2.1% drop. May's decline was revised upward to show a 1.6% drop.

Meanwhile, output declined 1.4% between the second quarter of this year and the corresponding period in 2015.