Construction output decrease drags down UK economic growth
Construction output decreased by 1.8% in the fourth quarter of 2014, according to the latest ONS figures published today.
The decrease in construction output dragged down growth for the overall UK economy over the period, with overall output growing 0.5% over the three month period, down from 0.7% in the third quarter 2014, and registering below the 0.6% growth most economists had forecast.
Despite the slower than expected fourth quarter growth, Britain’s gross domestic product grew by 2.6% in 2014 as a whole – its fastest annual growth rate in seven years.
The ONS’s chief economist Joe Grice said it was “too early to say” if UK economic growth was slowing down.
He said: “This is the second consecutive quarter in which the growth rate has fallen but it is too early to say if there is a general slowing-down of the economy.
“The dominant services sector remains buoyant while the contraction has taken place in industries like construction, mining and energy supply, which can be erratic.”