Construction output falls unexpectedly

Sarah Davidson

September 11, 2015

Moreover, annual UK construction output fell by 0.7%, which was also contrary to market analysts’ forecasts of a 0.6% rise.

The main contributor to the fall was a year-on-year decline in new housing being built, which fell by 2.5%, the first decline since March 2013.

In July 2015, output in the construction industry decreased by 1.0% compared with June 2015, after increasing by 0.9% in June. All new work decreased by 1.5% while all repair and maintenance showed no growth.

Within all new work, there were falls in all work types except infrastructure and private industrial.

Public new housing, private new housing, public other new work and private commercial work decreased by 5.8%, 2.0%, 4.5% and 2.9% respectively.

Within the repair and maintenance category, the growth in non-housing of 1.4% was offset by housing which decreased by 1.4%.

Compared with July 2014, output in the construction industry decreased by 0.7%. This is the first year-on-year fall in construction output since May 2013, when it fell by 2.8%.

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