Trade and construction data boost UK economy hopes Construction figures were weak, showing that output in the industry contracted by 2.6pc over the third quarter to its lowest level in 13 years. But the official figure was not materially worse than the ONS's estimate of a 2.5pc contraction. The ONS said the revision would have a "negligible" impact on GDP. Chris Williamson, an economist at Markit, said: "The data add to the view that the economy enjoyed something of a bumper third quarter, during which GDP is estimated to have risen 1pc." The goods deficit with the European Union, which buys about half of British exports, narrowed to £4.4bn in September from £5bn in August. Exports to the EU fell 0.1pc on the month, while imports dropped 3.5pc. Britain's manufacturers have been trying to build up their presence in markets beyond Europe, which looks like it will be a drag on demand for some time to come due to the eurozone crisis. However, economists warned that the good news may be short-lived. Howard Archer at IHS Global Insight said: "Unfortunately, the prospects do not look great for a further positive contribution from trade in the fourth quarter given the pressure on exports coming from on-going very weak domestic demand in the eurozone and generally soft global growth. The latest survey evidence on foreign orders is soft and weakened in October. The construction figures also highlighted the difficulties faced in the construction sector. Mr Archer said: "The construction sector continues to be hampered by major headwinds, notably including public spending cuts, an extended weak economy, a struggling housing sector and problems in getting funding for large-scale projects." There are hopes the wider economic recovery will kick-start building work, while the Government is separately planning initiatives aimed at boosting infrastructure and house building.