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Construction Fell to Four-Year Low Following Brexit

Official figures have revealed that the output of the UK’s construction industry fell by 1.1% in Q3 2016.

UK Construction Output Fell Following Brexit

Official figures have revealed that the output of the UK’s construction industry fell by 1.1% in Q3 2016.

The slight decline in output was attributed to the impact of Brexit by the Office for National Statistics (ONS), who published the figures.


The UK’s decision to leave the European Union had been expected to hit the industry harder in the aftermath, with initial projections indicating that the ONS was anticipating a fall of 1.4% across Q3 following the results of the referendum.


Whilst the industry output remains below the levels seen pre-Brexit, the ONS also reported that the sector is seeing a recovery, with construction in September alone seeing an increase of 0.3% - defying industry predictions of a 0.2% fall for the month.


Commenting on the latest figures, housebuilding construction specialists Redrow, indicated that the figures required greater scrutiny before judgement on the health of the UK construction industry can be made.


According to the firm, the output of housing construction was in fact up by 8.7% on Q3 2015, with private housing actually rising by 10.8%. Redrow indicates that the public housing is responsible for the fall, with construction falling by 3.1% in this sector.


In spite of these indications of growth, last month Savills revealed that the number of new homes needed each year in order to meet current demand stands at 300,000.


Addressing the Conservative party conference at the start of October, chancellor Philip Hammond also announced a new £3bn package that will see 25,000 new homes built before the end of this Parliament. The package is expected to be explored more widely in next week’s Autumn Statement address.