Construction activity shrinks 0.5% in November

Aaron Morby 1 year ago
Share

Construction output unexpectedly fell o.5% in November, suggesting activity is struggling to bounce back strongly from the mid-year slowdown in 2015.

Theme graph construction down

This time new work rather than refurbishment was the largest contributor to the fall, decreasing by 0.7%.

Infrastructure and private commercial work drove the falls, down 4.3% and 1.5% respectively.

Within new work, there were increases in public other (2.3%), private industrial (1.7%) and total housing (0.9%).

ONS November

The three-month trend output figures for September to November were also down 1.4% against the previous summer three months period.

The ONS said construction output would have to increase by 2.6% month-on-month in December to avoid a fall for the fourth quarter as a whole. This would come after a 1.9% fall in construction output in the third quarter of 2015.

Mark Robinson, Scape Group Chief Executive, said: “Although we’ve started 2016 with some ripples of uncertainty in the global economy, whether that’s concern about the Chinese stock market or international oil prices, UK construction is on a strong footing.

“High demand for housing and infrastructure projects will help to sustain the construction industry throughout the year, whatever happens abroad.

“One international issue that does matter in the year ahead, however, is the possibility of ‘Brexit’. The government’s renegotiation and the possibility of Britain leaving the EU could both have huge implications for the construction industry, which is highly dependent on skilled construction workers from the continent.

He added: “As a country we struggle to train enough young people to meet our future construction needs, and by making it difficult for European workers to come here, we risk exacerbating the skills crisis further.”

 

Latest news

Project manager found guilty of manslaughter

Site boss convicted after huge window frames topple over and kill passer-by
3 hours ago

Crest Nicholson shareholders revolt over directors pay

Chief executive Stephen Stone to pocket almost £812,000 in share bonus
3 hours ago

Durkan signs £71m deal for resi rental towers

Link-up with investors M&G Real Estate to provide hundreds of homes in East London
14 hours ago

Laing O’Rourke agrees £350m Welsh hospital deal

Main enabling work to start this August
4 hours ago

Everton agree land deal for £300m stadium

New stadium set to be built at Bramley-Moore Dock on the Liverpool waterfront
11 hours ago

Construction drives Kier to strong half-year

Kier construction profits rise a fifth on £1bn record revenue as margins hit 2%
18 hours ago

Project delays hit WYG profits

Consultant geared-up for work boom which has been hit by delays
18 hours ago

Osborne set for £60m Twickenham station project

Osborne secures station double for developer Solum
18 hours ago

Sixteen road projects at risk of being scrapped

NAO calls for urgent action on highways resource and programme planning crisis
1 day ago

Willmott Dixon wins £46m Ponteland school and leisure job

Newcastle office bags combined school and sports scheme
19 hours ago

Redrow lands 1,000 home London estate rebuild

Post-war housing will be demolished on the Alton estate in Roehampton
2 days ago

Plans go in for £40m revamp of Scottish Power HQ

Developer FM Group to transform former office into apartment and leisure complex
1 day ago

Ringway wins £270m south west highways upkeep

South west maintenance and response deal starts this summer and runs for 15 years
2 days ago

London’s largest crane rises above Earls Court

120m tall heavy lift crane called in to remove 1,500t 'Big Bertha' concrete beam
2 days ago

Kier infrastructure MD Jag Paddam exits

Management rejigged to co-ordinate wider infrastructure and utilities business
2 days ago

Government confirms plans for four new prisons

Plans to go in for schemes which could create 2,000 construction jobs
2 days ago

Forrest unveils £26m loss in restated two-year accounts

Forrest scales back maintenance work to focus on new build housing
2 days ago

Van Elle warns contract delays to weaken year-end

Railway project delays impact specialist piling division
2 days ago

Company fined £700,000 for MEWP death fall

Washing machine giant fined after 66-year-old contractor dies during factory repair work
2 days ago

Shaylor sees turnover break the £100m barrier

Contractor posts record results and reports strong start to 2017
2 days ago

East London £600m schools framework winners

B&K, Willmott Dixon and regional firm Neilcott among big winners
3 days ago

Muse awards Galliford Try £25m London flats job

Blocks of flats form part of Lambeth Council's town hall redevelopment
2 days ago

BAM to build new HSBC office in Sheffield

Banking giant to anchor first phase of new £480m retail quarter
2 days ago

Cost wrangle hits O’Rourke cancer hospital site

Client and main contractor in talks over costs seven months after site start on £106m job
3 days ago

Cambridge Uni agrees £300m physics complex plan

Planning permission will now be submitted for Cavendish physics laboratories
3 days ago

£1.3bn deal to spark Swansea Bay construction boom

Eleven major projects get the go-ahead across the region
3 days ago

Price-fixing whistleblowers offered £100,000 reward

Competition and Markets Authority launches its first-ever advertising campaign to crack down on cartels
3 days ago

Steelwork contractor Billington gears up for expansion

Steelwork contractor eyes overseas markets as profit rises
3 days ago

£40m Pontypridd scheme re-ignites after six-year hiatus

Welsh Government puts office-led scheme on track with anchor tenants
3 days ago

Travelodge unveils £125m hotel investment plans

Tolent starts construction on chain's largest ever new build in City of London
3 days ago

Contractor services