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Britain’s construction industry has not performed as badly as originally thought. The Office for National Statistics originally believed that the construction industry would fall by up to 5.2%, however today it announced more favorable data. The sector as a whole only fell 3.9%, meaning the the preliminary gross domestic product report will need to be revised.
The Office for National Statistics has announced it will raise the GDP by 0.1%, a small but welcomed figure. Construction is not the only sector to slow less than expected. Earlier in the week the industrial industry also had its stats revised, resulting in an increase of 0.06%.
Output in Britain’s construction sector slowed less than first believed in the second quarter of 2012, leading the UK’s official statistics body to revise upwards its estimate of the economy in the three months to the end of June.
New work was sparse in the construction industry throughout the second quarter. New contracts were down 4.6%, as infrastructure fell 8.6% – leading the decline table in the sub-sectors. Infrastructure output was down by around 25% on last august.
The ONS did stress that the data should be taken with a “pinch of salt” due to colder-than-expected weather through the month of June, a key holiday period. The data did point towards a massive drop in non-housing, which cannot be contested. The only question that remains is just how big of a fall we can expect to see.
Production Costs Rise
The report also indicated that the cost of production had remained stable. “Factory Gate” prices had been subjected to a 1.3% rise in raw material and fuel prices, which was offset by import prices of chemicals and metals.