Sharp fall in construction

Official figures offered more evidence of the struggles of the wider building industry, after a disappointing 0.9 per cent fall in construction output during August.

The latest setback undid part of July's post-Jubilee bounceback for the sector, underlining worries over the strength of the overall economy's recovery between July and September. Construction accounts for less than 7 per cent of the economy but industry output is down 11.9 per cent on a year ago.

IHS Global Insight's Howard Archer said builders would make no contribution to growth in the third quarter.