UK construction output rises as expected in December

UK construction output rose in line with expectations in December, according to data from the Office for National Statistics.

Output in the construction industry was estimated to have increased 1.5% compared with November – in line with expectations – as a 2.6% rise in all new work was offset by repair and maintenance, which slipped 0.5%.

Construction output in the fourth quarter dropped more than expected, however, down 0.4% after a 1.7% decline in the third quarter.

For 2015 overall, construction output was up 3.4% compared with 7.5% growth in 2014.

“Construction output saw a much-needed decent jump of 1.5% month-on-month in December after a recent stream of disappointing performances,” said Howard Archer, chief European and UK economist at IHS Global Insight.

“There are some positives for the construction sector going forward, but it is clearly vulnerable to confidence among clients being pressurised by heightened UK and global economic uncertainties.”