Markit's and the Chartered Institute of Purchasing & Supply's construction purchasing managers' index (PMI) for the U.K. decreased to 57.1 in July from 58.1 in June, missing expectations for a rise to 58.4.

A reading above 50 indicates expansion in the construction sector.

The decline was driven by a slower increase in business activity and incoming new work.

"Commercial activity was a key growth driver during July, which partly offset ongoing weakness in civil engineering and softer residential building trends. Sustained growth across the UK economy so far this year has firmed up demand for commercial building work, with construction companies noting a particularly strong appetite for new development projects among clients," an economist at financial data company Markit, Tim Moore, said.