Construction activity shrinks 0.5% in November

Aaron Morby 7 months 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

Administrators at HOC swamped by creditor claims

Angry suppliers and staff to vent their rage at creditors' meeting next month
1 day ago

Wates wins £30m Cumbria campus

Designs now being worked up for Campus Whitehaven scheme
19 hours ago

Government dithers over Hinkley Point decision

Ministers want to "consider carefully" over £18bn scheme despite funding agreement by EDF
1 day ago

Clugston starts hunt for new chief executive

Stephen Martin leaving after 10 years to become director general at the Institute of Directors
1 day ago

Alun Griffiths gets go-ahead for £14.5m roundabout upgrade

Funding agreed to ease congestion in Gloucester
1 day ago

Gary Neville unveils twin towers plan for Manchester

Far East backing could see work start on £200m site next year
2 days ago

Ban for labour supply boss over VAT swindle

Kent labour agency director banned for seven years after cheating HMRC out of £350,000
1 day ago

HMRC smashes £6.9m construction tax fraud

Payroll and labour supply bosses kept tax deducted from workers on major sites
2 days ago

Bid race starts for £400m public health science hub

Bidders day to be held in September for major new Harlow research HQ
2 days ago

QS shortage still holding back construction

RICS survey shows rate of growth slowing as funding fears rise
2 days ago

Balfour plan for 922-home Surrey estate approved

Work expected to start in 2017 on Shearwater estate regeneration
2 days ago

Countryside sales up after post-Brexit cancellation blip

Cancelled homes now reselling at higher prices
2 days ago

Worker killed as platform hits overhead power line

Court hears supervisor electrocuted when platform hit live cable
2 days ago

Go-ahead for £344m London City Airport expansion

Work to create 500 construction jobs on terminal and taxiway upgrade
3 days ago

Arsonists strike at road works site in Surrey

Vandals burn out an excavator and dumper
3 days ago

Workers sent home from Cardy Construction sites

£63m turnover Kent contractor files notice of intent to appoint administrator
4 days ago

Taylor Wimpey reports “business as usual” post Brexit vote

House builder reports "normal" trading patterns after month of analysis in wake of referendum
3 days ago

Drug giant GSK unveils £275m of new construction plans

Major investment plans at trio of sites: Full details
3 days ago

Former finance chiefs at failed Connaught struck off

Stephen Hill and David Wells barred from accountancy profession
3 days ago

Civils contractors warn growth has “ground to a halt”

Government urged to restart boom with infrastructure investment plans
3 days ago

Competition watchdog clears Breedon takeover of Hope

Deal completes on Monday to create largest independent construction materials group
3 days ago

B&K wins Coventry airport £50m warehouse deal

Builder to start in August on three warehouses at Imperial Park distribution hub
3 days ago

Student digs giant Unite commits to £675m pipeline

Student accommodation construction boom continues as Unite eyes London market for bargains
4 days ago

US investor snaps up Morrison Utility Services

£600m turnover contractor bought by investor First Reserve
4 days ago

Lindner wins £25.4m cladding package at Principal Place

Facade work to start on 50-storey resi tower in City of London next year
4 days ago

Go-ahead for Portsmouth prison-to-homes job

Developer City & Country to create 230 homes at HMP Kingston site
4 days ago

£60m expansion plan for Manchester biomedical hub

Construction to start next Spring on latest phase of Citylabs scheme
4 days ago

Labourer crushed under three tonne road roller

Machine slides down steep bank and pins worker beneath it
4 days ago

Arup to work on 21-storey resi tower made of wood

Construction to start next year on world's tallest wooden resi tower in Amsterdam
4 days ago

CITB to fund “Robots for Roofing” research

Drone flying programme one of beneficiaries of latest CITB funding round
5 days ago