Infrastructure output has taken its biggest hit in over two years, official data has revealed.
The Office for National Statistics (ONS) released figures on Friday that showed a seasonally adjusted £1.38bn of new infrastructure work was carried out in January 2016.
This was down 8.6% from December, marking the biggest monthly fall in output since September 2013.
It also represented the second lowest total of the past 13 months, marginally above November’s £1.37bn.
Overall construction output was down 0.2% to £10.96bn in January 2016, according to the figures.
Construction Products Association economics director Noble Francis said: “The fall in the ONS’s construction output in January was disappointing but largely reflects the impacts of poor weather at the start of the year with floods in many parts of the country.”
He added: “Our forecasts anticipate that output will increase 3.6% in 2016, with growth in the three largest sectors of construction; private housing, commercial and infrastructure.
“Nevertheless, while fundamentals such as projects in the pipeline remain good, the risks around the forecast are quite high due to skills shortages, concern about the delivery of major projects like Hinkley Point C and increased uncertainty for investors owing to the EU referendum.”