Growth in the UK construction sector dropped pace substantially in May, hitting its lowest level in three and a half years, the Chartered Institute of Purchasing and Supply said today. The CIPS headline index of activity slipped to 52.6 in May from 54.8 in April. A reading above 50 signals that growth is taking place. The latest data comes on the back of a slump in the manufacturing sector and suggests that the UK economy is dropping pace on all sides. "Softer growth of the construction sector as a whole reflected a decline in civil engineering, static housing activity and an easing in the rate of expansion of commercial activity," CIPS said. Civil engineering activity fell for the first time in four months, with the seasonally adjusted sub-index dropping to 47.9. The housing sector stabilized after two straight months of falls while the commercial sector bucked the overall trend to register strong growth levels. New construction orders slowed in May, to a show slowest growth in three months. Employment, meanwhile, eased to the softest in 16 months.