UK construction recovers in February

<p>Construction in the UK is slowly improving.</p>

Construction data for the UK shows the sector's health improved slightly during February, but the industry is still expected to contract for the first quarter as a whole.

Non seasonally-adjusted figures released by the Office for National Statistics on Friday showed that construction output was seven per cent lower in February last year. However, the data revealed it was 5.5 per cent higher than in January.

The construction sector is seen as a major indicator for the health of the UK's economy and there are still fears the country could be heading towards a triple-dip recession.

Speaking to Reuters, Brian Hilliard, economist at Societe Generale, described the figures for February as "encouraging", but noted output remains below the level seen before the winter weather set in for the winter December.

Mr Hilliard said he believes the UK could experience 0.1 per cent growth in the economy as a whole for the first quarter of the year.

Jeremy Stretch, head of currency strategy at CIBC World Markets, recently told Reuters investors should not be concerned about the possibility of a triple-dip recession.

Learn about the sterling and forex trading at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.