Little sunshine for construction
The Office for National Statistics said construction output volumes in the three months to August were 1.9 per cent lower than in the same period a year ago.
The construction sector, which makes up just under 8 per cent of gross domestic product, grew by 1.1 per cent between April and June, but economists said yesterday’s data suggested a weaker performance in the third quarter. Chris Williamson, economist at Markit, said: “Construction industry output appears to be collapsing. The downturn in the construction sector provides further cause to worry about the overall health of the economy.”
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Hide AdHoward Archer, chief UK economist at Global Insight, added: “The construction sector faces an extremely challenging environment, which threatens to limit activity over the coming months.”
A recent survey of purchasing managers showed UK construction activity had stagnated in September after a contraction in the home-building and civil engineering sectors.