UK Construction Falls in October

Output in the UK construction industry suffered a sharp fall in October, official figures have shown.

The Office for National Statistics (ONS) said output dropped by 2.2% in October from the month before.

However, there was a sharp upwards revision to construction output growth for the third quarter of the year, which doubled to 1.6%.

The ONS said this could mean that overall economic growth in the quarter could be revised up to 0.8% from 0.7%.

It said this assumed growth in manufacturing and services remained unchanged in the quarter.

The ONS publishes its third and final estimate of GDP for the third quarter on 23 December.

As well as falling in October, construction output grew by just 0.7% when compared with a year earlier, the slowest annual growth rate since May 2013.

The ONS said there were reductions in output across the construction industry, with only public new work – excluding infrastructure – showing a slight increase.

Last week, the closely-watched Markit Purchasing Managers’ Index for the construction sector showed activity expanded at the slowest pace in more than a year in November.


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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza