Construction orders in the U.K. declined sharply in the second quarter after improving in the previous four quarters, data from the Office for National Statistics showed Friday.
The total volume of new construction orders in the second quarter fell 14% from the first quarter. Compared to the same period of 2009, the decline was 9%. The only sector showing a growth in new orders was private industrial.
Indeed, the latest data and survey evidence highlight the fact that the construction sector faces a very challenging environment, commented Howard Archer, an economist at IHS Global Insight. "While the construction sector only accounts for 6.3% of national output, the recent marked slowdown in activity adds to concerns over the economic outlook," the economist added.
Private housing orders were down 24% from the first quarter and public housing orders dipped 23%. Infrastructure orders and public non-housing, excluding infrastructure fell 22% and 13%, respectively. While, private commercial orders decreased 7%, private industrial orders grew 26%.
Led by slowdown in residential construction, growth of U.K. construction sector weakened in August, the latest survey from Markit Economics showed. Data released on September 2 revealed a decline in construction new orders.
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