CONSTRUCTION industry output has grown by 0.8 per cent, according to official figures.

The Office for National Statistics said the rise had been recorded when comparing the second quarter of the year to the three months the end of September.

Yesterday the ONS stated there was a 1.8 per cent rise in output during September as the sector recovered from the three per cent dip seen during August.

Economists suggested the rebound seen in construction during September means there is unlikely to be any need to revise GDP estimates downward from the current 0.7 per cent level.

The improved levels of activity seen in September were a result of private and public sector housing.

However there were warnings that activity there is likely to moderate in the coming months as the housing market continues to cool.

But economists also suggested many indicators across the sector are pointing towards further expansion of output.

Howard Archer, from IHS Global Insight, said: "The prospects currently look relatively healthy across construction sectors and it should be able to achieve further decent expansion in the fourth quarter assuming that there is no significant weather disruption."

Chris Williamson, economist at Markit, said: "After alarm bells were rung in the UK construction sector in August, when output fell dramatically, the sector staged a partial recovery in September to record healthy growth over the third quarter as a whole."