Economic growth in the second quarter could be revised down to 1 per cent after the Office for National Statistics released its latest construction output figures.
The ONS said construction output in the third quarter was up by 4 per cent. But output between April and June was revised down from 9.8 to 6.8 per cent. Although the sector accounts for just 6.3 per cent of UK output, it was responsible for half of the GDP growth seen in the second quarter, and the revision, if all other elements are unchanged, will cut GDP from 1.2 to 1 per cent.
"Obviously any downward revision would be disappointing but the overall economic picture would not change that much," Howard Archer, chief economist at IHS Economists said yesterday, noting that the Government cuts are already expected to hit the sector.Reuse content