The construction data showed that the sector declined by 0.9% in June compared to May and by 2.2% compared to the same period last year. The ONS stated the decline was driven by a 0.8% drop in all new work, while repair and maintenance was also 0.5% lower.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “June’s official data confirms that the construction sector re-entered recession in the first half of this year.”
“The downturn looks set to deepen in Q3. Meanwhile, Brexit negotiations will be protracted, so businesses will hold off committing to major capital expenditure for a long time to come.”
“In addition, the public investment plans won’t be reviewed until the Autumn Statement at the end of the year and few construction projects are genuinely ‘shovel ready’.”
“Accordingly, we continue to think that a slump in construction activity will play a key role in pushing the overall economy into recession over the coming quarters.”
The ONS said as this data covers the second quarter of 2016 plus the month of June, “there is very little anecdotal evidence at present to suggest that the referendum has had an impact on output”.