Little sunshine for construction

British construction output nudged up 0.4 per cent in August but fell 4.1 per cent compared with a year earlier, official figures yesterday revealed as the sector’s woes continued.

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.”

Howard 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.