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Construction output props up GDP growth

27 Oct 10 A 4.0 percent rise in construction output was the largest contributor to help GDP climb 0.8 percent in the third quarter of 2010.

Growth in Q3 was lower than the 1.2 per cent growth in Q2, but allowing for the recovery in Q2 following the bad weather at the start of the year, the underlying growth in Q3 was broadly similar to that in Q2, according to the Office of National Statistics.

Construction’s growth outpaced that of both production industries and the service sector, which were both up just 0.6 per cent.

The 4.0 percent increase in construction follows a revised second quarter growth of 9.5 per cent. The second quarter rise was significantly boosted, however, by a shrunken first quarter that was suppressed by snowy weather.

Construction output increased 11.0 per cent between 2010 Q3 and 2009 Q3.

With house building and commercial construction slow, construction growth is attributed to civil engineering and infrastructure work.

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