UK construction sector posts weakest figures in four years amid post-Brexit slowdown

Britain's construction sector posted its worst performance in four years, after shrinking in the first three months following the Brexit vote, data released on Friday (11 November) by the Office for National Statistics (ONS) showed.

Output in the third the first three months following Britain's decision to leave the European Union fell 1.1% compared with the previous quarter, amid downward pressure from the repair and maintenance sector which decreased by 3.6%, partially offset by an increase in new work of 0.3%.

Output in the construction sector increased 0.3% month-on-month in September, however, compared with analysts' expectations for no growth and a 1.1% drop registered in August, which was revised upward from the initial estimate showing a 1.5% decline.

All new work increased by 1.2% while there was a fall in repair and maintenance of 1.4%, the ONS said.

On a year-on-year basis, the construction sector saw output climb 0.2%, compared with analysts' forecast for a 0.4% drop, while the previous month's 0.2% increase was revised upward to show a 0.8% gain.

Data released last week by Markit/CIPS UK showed the construction sector expanded at the fastest pace since March in October.

The closely-watched Construction Purchasing Managers' Index stood at 52.6 last month, compared with analysts' expectations for a 51.8 figure and with the 52.3 reading recorded in September.