UK construction output falls in February on weak infrastructure activity

According to data published by the Office for National Statistics on Friday, UK construction activity declined sharply in February as infrastructure activity weakened. UK construction output fell unexpectedly in February, down 1.7 percent on a seasonally adjusted basis, missing consensus estimate for a 0.1 percent increase.

Data compared to a revised to 0.0 percent reading in the previous month (original reading having shown a dip of 0.4 percent) after a 1.8 percent rebound in December from a drop of 0.8 percent in November.

Slump in infrastructure activity was seen as the main drag on output in February, decreasing by 7.3 percent after strong growth in January, while residential building also contributed to the overall monthly decrease, falling month-on-month by 2.6 percent.

On an annualized basis, output rose only 0.5 percent in February, down from the revised 2.3 percent increase in January and short of the 1.9 percent consensus forecast. On a three-month basis, construction output grew for the fourth consecutive period, by 1.5 percent.