Construction output increased by 2.5% in Q3 2013, following an increase of 1.9% in the previous quarter, according to the latest figures from the Office for National Statistics (ONS). Between Q3 2012 and Q3 2013, construction output increased by 4.9%.

ONS said UK economic output rose by 0.8% between July and September, and that there had been a ‘fairly strong’ performance across all sectors.

The third quarter figure builds on a 0.7% GDP rise in the April-June, and is the best quarterly performance since 2010.

House-builders have benefited from the government’s Help to Buy scheme.  Glenigan’s October monthly review and forecast said that the recovery in private housing construction continued in September with sector starts 7% up during the three months to September, compared to the same period in 2012.

Noble Francis, Economics Director at the Construction Products Association, said:  “The GDP figures  show that construction was a key contributor to UK economic growth in Q3 for a second consecutive quarter.  This adds to increasing optimism that the industry is recovering from its worst recession in 35 years.

“Although output in the sector still remains 12.5% lower than it was five years ago, today’s GDP figures point towards recovery for the construction sector and the wider economy.”

The ONS also said that production grew by 0.5%, still 12.8% off its 2008 level, and within the figures manufacturing improved 0.9% in the third quarter.

The services sector, which represents three-quarters of economic output, grew by 0.7% and is now 0.6% above its pre-crisis peak.