Britain’s builders weathered the wettest January for 250 years but the nation’s trade gap with the rest of the world widened again over the month, official figures showed today.
Construction, which accounts for around 6% of the overall economy, rode out the downpours and floods to manage 1.8% growth in January, although revisions to the final quarter of last year now show the industry in a modest decline.
The Government’s Help to Buy scheme, however, continues to spur on housebuilders, with new housing work at the highest level since the ONS began collecting the figures in 2010.
The good news was offset by a bigger-than-expected widening in the UK’s goods trade gap with the rest of the world to £9.8 billion from £7.7 billion in December, although the figures were skewed by imports of expensive aircraft in January.
In the longer term, however, there is little sign of the rebalancing that was hoped for by the Bank of England and the Treasury.
In the quarter to January export volumes were 0.9% ahead of the same period a year earlier, but imports were up 4.6%.
Rob Wood, chief UK economist at Berenberg, said: “The bigger picture is the trade gap remains large and is not showing much sign of narrowing.
“Exporters face a stronger pound and a domestic, consumer-led recovery will boost imports,” he added.
