LONDON (MNI) — Construction output rose slightly on the month in
May following a sharp decline in April, but the weak outturn suggest the
sector may not add to GDP growth in the second quarter.
Construction output rose 0.4% on the month on a non-seasonally
adjusted basis in May. Some analysts had been expecting to see a sharper
bounceback following the 12.4% fall in April which was affected by the
extra bank holiday.
In the three months to May, output was up a healthy 12.8% but if
one assumes output in June rises by the same as it did last year, 7.4%,
Q2 construction would rise 3.1% on the quarter compared with Q1.
Last year, however, the seasonal adjustment meant that Q2
construction output was lowered on the quarter by 3.3 percentage points
and if there is a similar effect this time this would point to static
growth in seasonally adjusted Q2 construction output.
Analysts have, however, highlighted the erratic nature of the
construction data recent and the problems with the seasonal adjustment
which makes interpreting the data more difficult.
–London bureau: 0044 20 7862 7491; email: drobinson@marketnews.com
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