UK construction output falls as infrastructure activity weakens
Construction & Materials
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17:14 04/10/24
UK construction activity declined sharply in February, according to the Office for National Statistics on Friday.
Household Goods & Home Construction
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17:14 04/10/24
Output in the construction industry in February unexpectedly fell 1.7% on a seasonally adjusted basis, when the consensus estimate had been for a 0.1% increase.
January's output data was revised to 0.0%, with the original reading having shown a dip of 0.4% after a 1.8% rebound in December from a drop of 0.8% in November.
Year-on-year, output rose only 0.5% in February, down from the revised 2.3% increase in January and well short of the 1.9% consensus forecast.
On a three-month basis, construction output grew for the fourth consecutive period, by 1.5%.
Infrastructure provided one of the main downward pressures on output in February, decreasing by 7.3% after strong growth in January, while residential building also contributed to the overall monthly decrease, falling month-on-month by 2.6%.
Stronger repair and maintenance was not enough to offset this, with an increase of 1.2% month-on-month.
On Tuesday, more timely data from Markit/CIPS showed their UK construction purchasing managers' index fell to 52.2 for March from 52.5 in February, also short of forecasts. A PMI index reading above 50 indicates growth.