- 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.
Sharp decline in construction drags GDP growth
- But while steady growth in the UK as a whole is still expected, the prospects are less optimistic for Northern Ireland.
- A STEEP decline in construction output dragged down growth in the UK’s economy in the last quarter with the slow down worse than anticipated at 0.5 per cent.
- Analysts had forecast that growth would slow slightly from 0.7 per cent in the second quarter to 0.6 per cent in the three months to September.
- Manufacturing continued to struggle as it fell by a more moderate 0.3 per cent, while mining and quarrying increased 2.4 per cent.
Meanwhile, chief executive of the Federation of Master Builders Brian Berry said the figures “will shake away any complacency that the recovery in the construction industry can be taken for granted”.
Construction sector returns to modest growth
- THE construction sector returned to modest growth in June after a slowdown over the previous two months, official figures show.
- Construction output in June was 2.6 per cent higher year-on-year, below economists’ forecasts of a 3.3 per cent rise but still the fastest growth since March.
- The ONS added that the second quarter construction figure is higher than the flat output estimate it used to calculate gross domestic product (GDP) for the quarter last month.
- But it added this small upward revision to construction did not point to any material revision to the ONS preliminary estimate of 0.7 per cent GDP growth in the second quarter of this year.
- The ONS said: “Despite this increase the data for June 2015 continues a run of relatively weak monthly growth.”