United Kingdom Output in the Construction Industry

Description

Released on a monthly basis by the Office for National Statistics, this indicator provides an estimate of total output in the UK construction industry in both public and private sectors. The indicator is a key component of UK gross domestic product.
Latest Release: 12-12-2014 09:30:00
Next Release: 11-04-2014 08:30:00
Source:Office for National Statistics

The UK’s Conference Board has just released it’s pervasive Leading Economic Index for the month of July. This appears to record a slowing in upward trend of economic activity with the latest figure expanding by just 0.1% on the month, this is in comparison to expansion of 0.6% the previous month. Additionally, the Construction Output numbers from the UK slowed somewhat in the month of July. On a seasonally adjusted basis the 0% growth recorded reflects a fall from the June month on month expansion of 1.2%, consensus estimates for growth of 0.6% were missed. This dragged the year on year figure to a lower 2.6% from the 5.3% recorded in June, consensus here was for a reading closer to 3.2% growth.

July is seldom a growth month in terms of construction, but there are a few additional short-term factors weighing on an otherwise strong economy. Firstly, with specific regard to the construction sector, the Bank of England has displayed a determination to reduce the excessive growth in house prices in certain regions of the economy, new regulatory restrictions are due to come into force which are designed to limit transactions at the higher end of the market. These, if unsuccessful, will no doubt be followed up with further broader measures which will be targeted at dampening housing...