UK construction output at four-year low in Q3

UK construction output hit its lowest level in four years in July to September, according to figures from the Office for National Statistics.

Construction volumes fell by 1.1% in the third quarter compared to the April to June period, marking the weakest performance since the third quarter of 2012. Still, this was less steep than the 1.4% drop expected.

Downward pressure came from repair and maintenance, which slumped 3.6%, partially offset by an increase in new work of 0.3%.

In September, construction output was up 0.3% compared with August, versus expectations for a 0.2% drop. On the year, output increased 0.2% from September 2015.

Howard Archer, chief UK and European economist at IHS Global Insight, said: “By contracting 1.1% quarter-on-quarter in the third quarter after a dip of 0.1% in the second quarter, the sector is effectively in recession.

He said the data showed “a lacklustre end to a poor quarter for the construction sector”.