"The drop came mainly because new orders declined during the hot summer season," Park Cheol-han, an associate research fellow at the institute, said. "Builder sentiment also failed to get a boost from the parliamentary passage of a supplementary budget."

The subindex for new construction orders stood at 76.1 last month, down 17.7 points from the previous month.

In late July, the National Assembly passed an 11.03 trillion won ($9.9 billion) extra budget bill that President Moon Jae-in has promoted as a vital tool to create jobs and spur economic growth.

The CBSI for large builders clocked in at 91.7 in July, down 8.3 points from a month earlier, with the figure for small builders falling 10.8 points to 69.6. In contrast, the number for mid-sized companies gained 3.6 points to 92.9

The overall CBSI outlook for August amounted to 84.9, marking the lowest reading in six months due to seasonal factors, according to the findings. (Yonhap)