Construction Output Set to Drag
on UK Economic Growth Despite Rise in November
Construction output in November rose by 0.4% in monthly and annual terms according to ONS Figures. However in terms of monthly data, output declined by 2.0% on a rolling three-month basis and conditions appear to be more volatile. The fall is the largest since August 2012.
CPA Comment on Construction Output
Rebecca Larkin, Senior Economist at the Construction Products Association, commented: “Today’s data confirm what has been signalled by early indicators and industry surveys – that construction ended 2017 on a weak note. Past falls in new orders, particularly in the commercial and public non-housing sectors, now appear to filtering through into lower volumes of work. On a three-month basis, commercial output fell 5.4%.
“It now looks impossible that the industry avoided a full quarter of contraction in Q4, with the £30 billion private housing sector contributing the only positive story. Therefore, construction is set to have caused a drag on overall UK economic growth during the quarter.
For information visit the Construction Products Association website.