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Construction output fall contributes to declining economy

Official government statistics have confirmed that construction output fell between the third and fourth quarters of 2011, contributing to the first fall in GDP since the end of 2010 when economic activity was badly disrupted by snow.

The Office of National Statistics has revealed that GDP fell by 0.2% between the third and fourth quarters of 2011. In the full year of 2011, the economy grew by 0.9% — less than half the 2.1% growth seen in 2010.

Construction, along with mining and quarrying, utilities, manufacturing and some parts of the services sector contracted in the fourth quarter.

Output in the construction industry declined by 1.6% in November 2011 compared to November 2010 — the largest fall in construction output during 2011 on this basis. Both new work and repair and maintenance declined in November, continuing the trend seen through latter half of 2011. For new work, November was the fourth consecutive month of declining output and the largest decline since August; repair and maintenance followed a similar trend, with November’s output being the third consecutive month of decline.


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