UK construction continues to tumble

Construction across the UK continues to fall, according to the latest figures from the Office for National Statistics (ONS).

The February ONS figures show that construction fell 1.6 per cent month-on-month, and was down three per cent compared to February last year.

“Construction fell in the three months to February after an erratic couple of months, mainly due to a big decline in repair work,” said Darren Morgan, head of national accounts at the ONS “However, this was partially offset by growth in both infrastructure and housebuilding.”

Read more: Snow no: Construction activity shrinks in March after unusually bad weather

Meanwhile manufacturing fell 0.2 per cent in February, with the biggest decline seen in the manufacture of machinery.

“Manufacturing continued to grow in the three months to February but at the slowest rate seen since the summer, with increases in machinery, metal products and pharmaceuticals offset by falls in electrical appliances and oil refining,” said Morgan. “This drop in refining may have contributed to the fall in fuel exports and the large rise in fuel imports also seen in the three months to February.”

Total production fell 0.1 per cent in the three months to February following an 8.6 per cent fall in oil and gas production. However, production was up 2.2 per cent on the same month last year. The country's trade deficit also widened slightly in the three months to February, according to the ONS survey, with reduced imports of machinery offsetting the rise in fuel imports.

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The results come after figures IHS Markit/CIPS UK construction purchasing manager's index released last week showed that construction growth slowed from 51.4 in February to 47 in March. It was the first time industry activity fell below the 50 mark in six months. The slump followed disruption due to poor winter weather in March.

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CityAM

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