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CN Chart of the Week: Infrastructure output falls at the start of 2016

Harsh winter weather caused a downturn in infrastructure work in January, with new work falling by 8.6 per cent month on month.

Infrastructure new work has now hit its second-lowest level since December 2014 and was down by 5.8 per cent year on year, according to the ONS.

Construction Products Association economics director Noble Francis said the downturn in work across the sector “reflects the impact of poor weather at the start of the year”, adding that skills shortages were continuing to hamper growth.

Infrastructure output Jan 2015-Jan 2016_ONS

Infrastructure output Jan 2015-Jan 2016_ONS

Source: ONS

However, some senior economists have raised doubts whether the ONS’s infrastructure data is truly reflective of the sector.

There have been claims that the data has overstated certain infrastructure projects, particularly energy and electricity, which have overinflated output figures for the sector.

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