UK: Expect a drop in construction output of 0.6% in January – Lloyds Bank

Research Team at Lloyds Bank expects a drop in UK’ construction output of 0.6% in January, which would leave activity barely changed from a year ago.

Key Quotes

“Construction output surged by 1.8% in December according to official estimates. However, that still meant that output expanded by a tepid 0.2% over Q4 as a whole. The official data are both very volatile and prone to substantial revisions. After a dip around the EU referendum, sector sentiment surveys such as the PMI staged a sharp recovery, before again losing steam. Following the outsized gain in the ‘hard’ data last month we expect a pullback in January, one aided by colder weather.”