The weakness in overall output reflected falls in construction, which is "unlikely to be repeated in 2013".

BBC: Inflation to stay above target, says Bank of England

He repeated his call for more capital spending and said crucial sectors of the economy such as construction needed support.

BBC: Lib Dem Vince Cable warning over spending cuts

Shadow housing minister Jack Dromey repeated calls for a bankers' bonus tax to pay for 25, 000 new homes and 100, 000 new construction jobs for young people.

BBC: Housing minister vows to 'get Britain building'