UK construction sector rebounds in March

office_for_national_statisticsBritain’s construction sector bounced back in March, suggesting that the sector is reviving after a slow start to 2015.

According to the Office for National Statistics (ONS), construction output rose 1.6 per cent compared with the same month last year, and by 3.9 per cent compared to February 2015.

Private sector house building grew 2.3 per cent in March, after five successive months of contraction.

UK construction growth slowed at the end of 2014 and remained sluggish through the start of this year.

Overall, output in the first quarter of 2015 was down 1.1 per cent compared to the last quarter of 2014, a figure which the Construction Products Association (CPA) argued is not reflected in industry surveys.

The CPA said the official data contradicts a growing body of recent evidence from itself and other industry sources. Several independent organisations, including Experian and Markit / CIPS, have similarly reported growth in construction activity. These findings were reinforced last week by the Bank of England, which published its latest Inflation Report highlighting concerns with the comparative figures.

The CPA originally wrote to the ONS to raise this issue following the release, in April, of the original Q4 estimate. The CPA and ONS met in early May, and are currently working together to address this matter.

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