UK Construction Output Dips in July as House-Building Falls

British construction output unexpectedly dipped in July on the month, reversing a bounce seen in June, after the biggest annual fall in house-building in more than two years, official data showed on Friday.

Construction output fell by 1.0 percent on the month, bucking economists’ forecasts of a 0.5 percent pick-up after an unrevised 0.9 percent rise in June.

Compared with a year earlier, output fell by 0.7 percent, again disappointing economists’ forecasts of a 0.6 percent rise.

A major driver of the decline was a year-on-year fall in the amount of new housing being built, which dropped by 2.5 percent, the first decline since March 2013.

Construction of public housing fell by a hefty 15.6 percent, while the 0.8 percent growth in private construction was the slowest since March 2013 as well.

Construction fell sharply after the financial crisis and was slow to recover, but gained pace last year before easing in early 2015.

Only on Thursday, the Royal Institution of Chartered Surveyors pointed to a lack of housing as driving the biggest price rises in over a year. It estimates overall property prices will rise 6 percent in Britain this year.

Construction makes up 6 percent of Britain’s economy, but the data is volatile, especially on a monthly basis, and can contribute to significant revisions to overall GDP.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

Latest posts by Craig Erlam (see all)