UK construction industry output falls unexpectedly in November

The construction industry experienced an unexpected drop in output of 0.5% in November according to the latest figures from the Office of National Statistics.

Experts were predicting the sector would see growth of around 0.5%.

The ONS said that bad weather may have had an impact on the figures.

The lack of new work was a major contributing factor with a 0.7% decrease, while repair and maintenance also 0.2%.

There was growth within certain sectors of new work with public other (2.3%). Private industrial (1.7%) and total housing (0.9%) all seeing increases. These were offset, however, by shortfalls in infrastructure and private commercial work of 4.3% and 1.5% respectively.

The ONS said the increased growth in housing was attributable to the construction of student housing and the growth in house building matched October’s house price inflation, where the HPI increased by 0.8% over the month.

In comparison to 2014’s November figures, construction industry output had fallen by 1.1%.

When comparing the three months from September to November 2015, with the previous three months of June to August, construction output fell by 1.4%. New work decreased by 1.4% and all repair and maintenance fell by 1.2%.

Howard Archer, chief European and UK economist at IHS Global Insight said: “Another blow to hopes that UK GDP growth picked up in the fourth quarter of 2015 as construction output disappointing fell 0.5% month-on-month in November. This follows on from the even more damaging news that industrial production fell 0.7% month-on-month in November.”

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