UK Q3 construction output revised to show less sharp decline, little impact seen on Q3 GDP

The UK construction industry suffered a surprise slowdown in October, data from the Office for National Statistics showed on Friday. Construction figures showed output in the sector dropped by 0.6 percent in October compared with growth of 0.9 percent in September and economists' forecasts of a small 0.2 percent rise.

UK construction output continues downward trend in the three months to October, down 0.6 percent compared with the previous three months. The number of new starts fell by 0.9 percent compared with the previous month, while repair and maintenance work remained flat. Compared with a year earlier, output was up 0.7 percent versus forecasts for a 0.1 percent annual decline.

Third-quarter construction output showed a fall of 0.8 percent, a less sharp decline than a previous estimate that it dropped 1.1 percent. However, the ONS said the revision was too small to affect third-quarter gross domestic product materially.

The Bank of England in November said it expected housing investment to suffer less from Brexit vote than first thought. It predicts a slowdown in housing investment growth to 0.25 percent next year from 4.75 percent in 2016, compared with earlier forecasts of an outright fall next year.