Construction Output Decreases

posted 14.03.2013
According to the latest statistics from the Office for National Statistics the UK construction industry saw a sharp fall in January with decreases seen across almost all of the sectors within the industry.

Construction output as a whole in January was down 6.3% on December and 7.9% lower than in January the year before.

Over the three months ending 31 January 2013, output was down 11.0% on the previous quarter and down 10.2% year-on-year, the sector seeing the largest decrease in the November to January period were in new public sector work which fell by 23.5% and new public housing work which fell by 20.4%.

Noble Francis, Economics Director of the Construction Products Association, said: “Although poor weather during January undoubtedly exacerbated conditions, the construction output figures illustrate the current state of the industry, where output is now 17% lower than it was just five years ago.”

He added: “Of most concern, the falls occurred across all areas of construction. The effects of public sector cuts can clearly be seen as public housing output in the three months to January was 13.5% lower than in the previous three months and 20.5% lower than a year earlier. Private sector construction also endured sharp falls and output in commercial, the largest construction sector, fell 11.3% in the three months to January compared to the previous year.

“Government has made a large number of announcements over the past two years including £5.5bn capital investment in the autumn statement 2012 in addition to £4.69bn capital investment and £20bn private finance investment for infrastructure in the autumn statement 2011. However, infrastructure output in the three months to January was 9% lower than a year earlier. With the budget in less than two weeks, it is critical that the chancellor focuses on delivery rather than announcements. If this capital investment occurred then it would provide an additional 0.8% GDP growth for the UK economy.”

Scotland didn’t fair much better with the data showing that the Scottish construction industry declined by 10% last year, reducing its value to the Scottish economy by more than £1.1bn.

Recipro sourced this article from Construction Now.

Category: general, industry, Paul Jones