Output in the construction industry fell by 0.3% in the final quarter of 2013, despite overall economy growing by 0.7%

Construction site

Growth in the construction industry stalled in the final quarter of last year, with total output contracting by 0.3% quarter-on-quarter, despite the overall economy growing 0.7%.

The latest figures from the Office for National Statistics showed construction output contracted by 0.3% between the third and fourth quarter of 2013.

Construction was the only sector not to see growth over the period, with output in agriculture up 0.5%; production up 0.7%; and services up 0.8%.

The fall in construction output, which is a preliminary estimate, followed an increase of 2.6% in the previous quarter.

However, the longer term trend remains positive, with output up by 4.5% when comparing Q4 2013 with the same period in 2012.

Overall GDP rose 0.7% quarter-on-quarter, meaning the economy grew by 1.9% over the whole of 2013.

However, the economy remains 1.3% below the peak in Q1 2008, with GDP shrinking 7.2% from peak to trough in 2009.

UK Contractors Group director Stephen Ratcliffe said: “Despite the small fall in construction output in this quarter, the trend over the last year remains one of modest recovery.

“Unlike housing, the broader construction sector remains a lagging indicator and we would expect the main growth to come later than the wider economy”.

“UKCG members are starting to look towards the recovery, and will continue to work with government to help build industry confidence.

“The priority remains accelerating the flow of deals, and turning the public sector pipeline into projects on the ground.”