Construction is now technically in recession having contracted for the second quarter in row, according to the latest figures from the Office of National Statistics (ONS).
The ONS data shows construction output decreased by 0.7% between July and September, following a fall of 0.5% from April to June.
However, GDP grew 0.4% during the third quarter despite construction continuing to act as a drag on the UK’s growth.
ONS data earlier this month for the sector for the three months to August showed construction output slipped by by 0.8% compared with the previous quarter, driven by declines in new work and repair as well as maintenance activity.
The latest Markit/CIPS data at the beginning of October recorded a score of 48.1 for September, down from 51.1 in August, falling below the index’s “no change” threshold for the first time in 13 months.
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This is no surprise. The uncertainty around Brexit is biting with caution around risk being at the forefront of everyones mind. Surprise financial results in key contractors are further adding to speculation of uncertain times. Hopefully a temporary blip, it just means extra caution will be exercised where construction projects are concerned. My worry is that when we leave the EU, assuming we are financially strong will there be enough skilled labour to complete the works that have been put off without recruiting overseas?