UK construction output slumped in the last three months, as the government reduced its spending on house-building, infrastructure and other building projects.
Data from the Office for National Statistics showed a 0.9% drop in construction in August from the previous month, which led to a 12% drop in the third quarter compared with the same period last year.
Economists said construction is likely to drag on GDP in the third quarter. Chris Williamson of Markit said official figures will probably show the economy grew by 0.6% in the third quarter, but says that flatters performance because of the rebound from lost working days in second quarter. He forecasts that the economy actually grew by just 0.1%.