A fall in construction output of 0.7% in the second quarter slows UK economic growth to 0.2%

A fall in construction output has led to the UK’s lowest quarter-on-quarter growth for three years.

Figures from the Office for National Statistics (ONS) show the economy grew by just 0.2% in the second three months of 2008, compared with 1.6% in the same period last year.

The body said the slowdown had been driven by a 0.7% fall in construction output, the biggest drop since the third quarter of 2005.

The figures come after thousands of job cuts in the housebuilding sector and will increase fears that the country is headed for a recession.

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