New figures have revealed the construction sector saw signs of slowing down in August, with output falling…
According to figures from the Office for National Statistics construction output fell by the sharpest rate since 2012 during August. This fall was indicative of an overall slowdown in the economy across all industries.
The construction sector contributes around six per cent to the economy. The data revealed in the three months to August output fell by 0.8 per cent. This was the largest decline since March 2013. Comparatively, the second quarter of this year grew by 1.4 per cent.
The weak figures, according to the ONS, could be down to the wet weather during August. This could have prevented building work from progressing.
However, it is not all bad news for the sector. A survey published last week revealed construction growth moved at its fastest pace in six months during September. This was due, in part, to the restart of residential projects that had been on hold prior to the General Election in May. The uncertainty surrounding who would form the next government led many construction firms to stop taking on new projects.
The construction sector is facing numerous challenges ahead, not least in the housebuilding sector. Last week it was reported that recovery could be hindered by a shortage of homes for sale. As a result the government has pressed ahead with plans to encourage new builds, including setting new targets to produce a million new properties by the end of this parliament.
