UK construction sector hits summer high as record output boosts economy

The latest figures released by The Office for National Statistics (ONS) have revealed strong performance in the UK’s construction sector, with output up by 3.3%.

Housebuilding seems to have thrived throughout the summer heatwave with the growth of construction leaping by 0.5% in July as result.

Sterling was up 0.15% on the US dollar to trade at 1.293, and rising 0.2% versus the euro to 1.118, which boosted the UK’s economic fortunes. This healthy set of figures will help put the UK on course to exceed forecasts for Q3 of 2018.

Rob Kent-Smith, head of GDP for the ONS, said: “Growth in the economy picked up in the three months to July. The dominant service sector again led economic growth in the month of July with engineers, accountants and lawyers all enjoying a busy period, backed up by growth in construction, which hit another record high level.”

Further interest rates unlikely until after Brexit

Howard Archer, chief economic adviser to the EY ITEM Club, said: “We had expected GDP growth to be stable at 0.4% quarter-on-quarter in the third quarter but the July data mean there is a very real chance it could improve to 0.5% quarter-on-quarter.

“We do not expect any more rises in interest rates until after the UK leaves the EU in March 2019 given the major uncertainties that may occur in the run-up to the UK’s departure.

Archer added: “We believe that the Bank of England felt a 0.3% in our GDP over a three-month period was sufficient grounds in August to raise the interest rate by quarter of a percent to 0.75%.”

As the UK government continues to put a major focus on housebuilding in order to meet the targets set for increasing the country’s housing supply, the construction industry seems set to go from strength to strength, supported by a new recruitment drive in the sector.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT