Output in the UK’s construction sector in the second quarter of 2012 slowed less than previously estimated, the Office for National Statistics (ONS) said today.
As a result of the construction figures being revised, the ONS expects to raise its GDP estimate by 0.1 percentage points.
The updated figures show that construction output between April and June fell by 3.9% compared with the first three months of the year, an improvement from the previous estimate of a 5.2% decline.
The ONS said last month that GDP had contracted by 0.7% between the first and second quarter, and blamed a slump in construction activity for more than half of the decline. Together with revised industrial production data released earlier this week, the latest figures suggest that the updated second quarter GDP figure will show a contraction of around 0.5%.
Other figures released by the ONS today indicate a continued easing of price pressures in the UK, with factory gate inflation in July slowing to 1.7%, the lowest recorded for nearly three years. Output inflation has decelerated steadily since September 2011, when prices were 6.3% higher year-on-year.
This week the Bank of England lowered its forecast for economic growth in the UK, predicting that the economy would remain flat for the rest of this year, with slow growth after that.
Governor Sir Mervyn King said that policy makers will do all they can, but it will take a long time to bring about a recovery of the economy.