Bad June data confirms construction recession over first half of 2016

The ONS has said construction output fell more sharply than first thought in the second quarter of this year, indicating the sector entered a deeper recession over the first half of 2016.

Industry output fell 0.7% in the second quarter compared to the first, a deeper drop than the ONS’s previous estimate of a 0.4% drop.

It was the second successive quarter of construction output decline, after a 0.3% fall in the first quarter, putting the sector technically in recession.

The downward revision came after the ONS gathered full data for June for the first time - the month of the EU referendum - which showed a 0.9% month-on-month drop.

Output also fell 2.2% year-on-year in June, following a 1.6% drop the previous month. Annual output has fallen every single month of this year.

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