- A rise in house building activity and commercial work has helped drag Britain’s construction sector back from a seven-month low.
- However, the report cautioned that the overall rate of expansion remained slightly weaker than seen on average over this period.
- The survey noted that UK construction firms had ended 2015 with a “robust” level of overall business activity, adding that commercial building increased on the back of improving UK economic conditions, leading to new orders.
- Housing activity also showed strong growth, picking up from a 29-month low in November.
IHS Global Insight economist Howard Archer said it was a “reassuring survey”.
Tag: IHS Global Insight
Forecasted construction sector growth falls short
- He also pointed out that the November data on the construction sector from Britain’s purchasing managers was also softer.
- DISMAL official data yesterday revealed weaker than expected growth in the construction sector that followed on a sharp slide in output in the third quarter of the year.
- Output in the sector – accounting for about 7 per cent of British GDP – edged up just 0.2 per cent in October, significantly undershooting City forecasts.
- The ONS said infrastructure had risen to almost £4 billion (28 per cent) of total construction industry output over the year to September 2015.
- The Office for National Statistics also said that Q3 construction output was now estimated to have slumped by 1.9 per cent, heavily influenced by a 5.6 per cent fall in housebuilding.