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Construction surged in second quarter with 6.6pc growth

The construction sector grew a massive 6.6 per cent between the end of March to the end of June, helping overall GDP growth in the UK of 1.1 per cent, figures released by the Office for National Statistics today revealed.

In a shock reversal of the recent trend, which saw the construction sector contract by 1.6 per cent for each of the previous two quarters, the sector grew 6.6 per cent in Q2 2010, according to the preliminary figures.

Overall GDP growth was 1.1 per cent, with the construction sector contributing 0.4 per cent of this, equivalent to over a third.

This increase follows two quarters of negative growth, which put the sector back into an official double dip recession.

While resons for such a sharp increase are unclear, the figure could have been helped by a rush in the public sector to get work done before the election.

Despite such a strong level of growth, the outlook for the sector is still weak, given the massive cuts in public spending to come, which could top £123bn.