Construction Output Enjoys 3 Consecutive Quarters of Growth

posted 21.02.2014
Updated ONS statistics have dispelled fears that the end of 2013 saw a stutter in construction output, as they revised figures from a 0 to 0.2%.

The rise was driven by a healthy growth in construction output which rose to 0.7% although refurbishment work dipped 0.5%.

The new statistics mean the UK construction industry enjoyed 3 consecutive quarters of growth for the first time since 2010. While there is room for optimism there is still a long way back to its peak with output increasing just 1.3% on 2012 figures and still 12.2% lower than its £128bn record output in 2007.

Simon Rawlinson, Head of Strategic Research & Insight, EC Harris, said: “This week’s full release of construction output data is reassuring in that it shows not only that rapid growth seen during the middle of 2013 has been consolidated, but also that levels of activity across most sectors have been higher than previously reported. Revisions to seasonally adjusted series have added a further £1bn, equivalent to 0.9% on total output.”

In other sectors the housing sector has continued its strong growth and there has been some growth in infrastructure. The rate of growth in private housing output has slowed, but at 4% is still robust and accounted over the year for overall construction growth.

New build has continued to show stronger growth than repair and maintenance which suggest that property owners are trying to retain cash.

Recipro sourced this article from Construction Enquirer and Construction Index.

Category: industry, Paul Jones