Construction Downturn Shrinks UK GDP in October
UK: A decline in construction output contributed to a contraction in the national gross domestic product (GDP) in October, according to the latest data from the Office for National Statistics (ONS). Construction output decreased by 0.4% during the month, following a modest 0.1% rise in September.
Repair and maintenance activities experienced the steepest decline within the sector, falling by 1.3% overall, with private sector repair and maintenance dropping significantly by 3.8%. This contraction, combined with a downturn in production, led to a 0.1% decrease in national GDP for October.
Despite the monthly decline, GDP grew by 0.1% in the three months to October 2024, with construction output rising by 0.4% during the same period. In comparison, GDP had increased by 0.5% in the second quarter of 2024 (April to June). Infrastructure projects were the primary driver of new construction activity in the three months to October, growing by 3%. However, repair and maintenance of private housing saw a 4% decline during this period.
Source: Office for National Statistics (ONS)