Construction output for the three months ended January 31st dropped 10.2 per cent compared to the comparative period, according to the Office for National Statistics (ONS), dampening hopes that the sector was seeing a rival.

This was driven largely by a 7.9% drop in output in January, which was in turn pushed lower by a decline in new work.

Construction accounts for 6.8% of GDP, and has weighed heavily on the economy since the start of the recession.

The news reiterates indications by the Markit/CIPS construction PMI, which showed that construction declined for the fourth month in a row in January, with the index dropping to 46.8 from 48.7, significantly below consensus expectations of 49.0. Anything below 50 indicates a contraction.

Meanwhile, new work in the three month period was lower by 12.7%, driven by large falls in public and private-commercial other new work, which decreased of 23.5% and 14.5% respectively. There was also a 5.3% decrease in repair and maintenance, which was mainly due to a 12.3% fall in private housing repair and maintenance.

Estimates of the volume of infrastructure work decreased by 8.9% over this period and public new housing decreased 20.4% to £216m, its lowest level since the monthly survey began in January 2010.

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