Construction industry hit by fall in output

Construction output in the UK fell by 1.9% in February, leading to a minimal GDP growth of 0.1%. The fall, which marks a 1% contraction in the three months to February, was driven by a slump in activity in eight out of nine sub sectors – with private housing repair and maintenance the only area of growth, adding 0.2%. Non-housing repair and maintenance, and private commercial new work were the worst affected, contracting by 2.5 and 4%, respectively. Poor weather conditions and high interest rates were cited as the main factors behind the decline. Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: "Falls in construction activity also indicate a broader malaise the UK is yet to shake off. We've known for some time that major housebuilders have been building fewer homes, as people wait for finances to improve before making large financial decisions".

Daily Mail (13/04/2024)