- Sally Speed, skills and talent director at Rics
The UK construction output unexpectedly dropped in November, experiencing the biggest decline since May 2013, adding to signs that the nation's economy may struggle to gather steam after a mid-year slowdown. Output of the British building companies declined 0.5% on a monthly basis in November, according to the Office for National Statistics. Analysts, however, had predicted a 0.5% rise. In annual terms, output decreased 1.1%, against expectations that it would stagnate in the reported month. The ONS said bad weather may have undermined the construction activity, which accounts for around 6% of economic output. A sharp drop in construction output in the third quarter weighed on economic growth, which matched its lowest rate since late 2012 over that period. Construction output plunged 1.9% in the third quarter of 2015. The ONS said construction output would have to climbed by 2.6% month-on-month in December to avoid a decline for the fourth quarter as a whole.
However, Markit/CIPS reported earlier January that the UK builders' activity picked up pace in December as commercial construction surged at the fastest pace since October 2014, and the outlook for 2016 improved. The headline PMI measure increased to 57.8 in December, up from a seven-month low of 55.3 in November.
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