UK Construction Output Slides, March Worse Than Forecast

The British construction sector declined sharply in the first quarter, adding to signs the economy struggled against global weakness and uncertainty about June’s European Union referendum, data showed Friday.

The Office for National Statistics said construction output, which makes up 6 percent of the economy, fell 1.1 percent in the three months to March – worse than its initial estimate of a 0.9 percent drop.

The weaker reading reflected a dismal March for construction output, which plunged 3.6 percent compared with February – the worst month-on-month figure since December 2012. Economists polled by Reuters had expected a 2.5 percent drop.

March marked a third consecutive decline in month-on-month construction output – the first such run since the monthly series started in 2010.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.