New | UK construction output dips 1 per cent in July
Major driver of unexpected decline is 2.5pc decline in amount of new homes being built
British construction output unexpectedly dipped in July, reversing a bounce seen in June, after the biggest annual fall in house-building in more than two years, according to official data.
Construction output fell 1 per cent on the month, bucking economists' forecasts of a 0.5 per cent pickup after an unrevised 0.9 per cent rise in June.
Compared with a year earlier, output fell 0.7 per cent, again disappointing economists' forecasts of a 0.6 per cent rise.
A driver of the decline was a year-on-year fall in the amount of new housing being built, which dropped by 2.5 per cent, the first decline since March 2013.
Construction of public housing fell a hefty 15.6 per cent, while the 0.8 per cent growth in private construction was the slowest since March 2013 as well.
Construction fell sharply after the financial crisis and was slow to recover, but gained pace last year before easing earlier this year.