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Home Latest News Robust construction industry boosts UK economy

Robust construction industry boosts UK economy

According to the latest figures from the Office for National Statistics (ONS), construction output was up by 0.2 per cent between April and June compared with the first quarter of the year. When compared with Q2 of 2014 this was a rise of 2.4 per cent.

Analysts have suggested that the robust performance of the construction sector, which has grown at a faster than predicted rate, could even be enough to avoid a growth downgrade for the UK economy.

The increased output of the building industry was driven by an influx of new work, which increased by one per cent, the ONS reported. Indeed, the was a rise in activity across private new housing (3.9 per cent), infrastructure (0.5 per cent) and other public new work (1.2 per cent).

However, despite the steady growth from the construction sector, and even though construction contributes six per cent of the UK's GDP, the ONS said that these figures would not be enough to revise the country's overall economic forecast upwards.

Speaking to the Daily Telegraph, Mark Robinson, chief executive of public sector procurement organisation Scape, said that the June data showed a reversal of the trend seen over the last few months, "which is great news for the construction industry".

"After a slow start to the year and uncertainty around the general election, the market is feeling more confident and the industry is starting to bounce back," he said.

Questions still remain with regards to the reliability of the data provided by the ONS; at the end of last year the organisation revealed that it was altering the methodology it used for calculating construction output amid concerns that the results were not painting an accurate picture of the market, but the new methodology, some analysts say, is still not completely believable.