Construction activity hit a new low last month as tighter lending criteria and decreasing confidence continued to batter the UK housing market.

The Chartered Institute of Purchasing and Supply's construction PMI sank to 36.7 in July, its worst since records began back in 1997 and down from 38.8 in June. A read below 50 indicates contraction.

The housing sub-index also touched a series low when it fell to 18.7 from 25.6 the month before, the eighth monthly drop in a row.

A record low for new orders at 41 was also flagged in the report alongside another sizeable read for input prices, with the figure at 79, down only a little from 81.1 in June.

The Bank of England announces its decision on interest rates Thursday. Experts still can't agree whether policymakers will hike rates to control inflation or cut them from 5% to help borrowers.