Sector output falls for second consecutive quarter

Construction has entered recession despite the overall UK economy unexpectedly growing, according to the latest ONS output figures.

The ONS鈥檚 first estimate for second quarter growth put the UK鈥檚 overall growth at 0.6%, but construction registered a 0.4% decline.

It was the second successive quarter of construction output decline, after a 0.3% fall in the first quarter, putting the sector technically in recession.

The second quarter covers the months of April, May and June, with the EU referendum on 23 June falling towards the end of the period.

Brian Berry, chief executive of the FMB, commented: 鈥淭he construction industry has grown steadily over the past few years and for the sector to experience two consecutive quarters of negative growth demonstrates the powerful effect uncertainty and a lack of confidence can have.

鈥淭he government must now take bold action and do everything in its power to prevent these preliminary estimates by the ONS from becoming more concrete or sustained.

鈥淎 firm commitment to invest public funds in capital projects such as house building and infrastructure would go a long way to assuaging fears that demand will dive in the wake of Brexit.鈥�

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