The contraction of Britain's building sector accelerated again last month, and construction orders over the three months to May also dropped, adding weight to fears that the UK faces a "double dip" return to recession.

The construction purchasing managers' index, a leading indicator of economy activity, had showed a brief lift in May. But the Chartered Institute of Purchasing and Supply (Cips) said yesterday that its index had dropped back by more than a point to 44.5 in June, still well below the break-even "50" mark.

Alongside wavering confidence in the future, historical data is also gloomier than expected. Office of National Statistics (ONS) numbers for the three months to May, also published yesterday, show construction industry orders falling by 1 per cent compared with the previous three months, and 30 per cent year on year.