The UK economy suffered two major blows this week when it was announced the housing market is beginning to show serious signs of cooling off and manufacturing for the month slid more than expected.  Now, construction has fallen off.  These three fundamental segments of the economy must remain strong for the recovery to continue moving in a positive direction.

The ONS or Office of National Statistics announced the stifling news as May experienced a fall of more than 1% as the construction of private sector houses is showing signs of stagnation.

The rocky road figures displayed by the three fundamental segments of the economy could be more than just signs but possibilities that the UK economy is beginning to wobble following several strong months in a row of positive movement.

Howard Archer with IHS Global Insight commented on the construction sector and its ability to impact the economy, saying: “Until recently, it had looked highly likely that GDP growth in the second quarter at least matched the 0.8pc expansion achieved in the first quarter, but this is now looking increasingly questionable. Clearly, much will depend on the dominant services sector as well as a rebound in construction output and industrial production in June.”

The trilogy of sectors responsible for moving the needle of growth of the entire economy came out of the blocks with steam during the first few months of this year.  They have now all cooled off and are going through a correction of sorts.

Scott Corfe with the Centre for Economics and Business Research, commented on the figures saying they “will add to concerns that the economic situation in the UK is starting to wobble”.