Construction activity shrinks 0.5% in November

Aaron Morby 5 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

Suppliers hit as HOC goes into administration

Redundancies at £120m turnover contractor as subcontractors left in dark
24 mins ago

Student digs developer shrugs off Brexit worries

Empiric confident EU vote will have limited impact on expanding sector
19 mins ago

Brexit leaves Heathrow third runway in the air

Fears grow about the future of major infrastructure projects
36 mins ago

Bid costs dent Hochtief UK profits

Operating margin drops to 0.7% as profit falls 45% to below £1m
50 mins ago

Breakaway trade body formed by rebar producers

Independent rebar producers and suppliers split with BAR
10 mins ago

Sinkhole closes busy stretch of A1

Contractors pumping huge hole with concrete in bid to reopen route
10 hours ago

Lendlease to start £275m Hammersmith scheme

Construction to start next month on major office project
3 days ago

Contractors call for calm as Brexit victory spooks markets

Construction fears over costs, skills and investment as house builder shares crash
3 days ago

Shepherd Group suffers £74m hit from sold building arm

Strong profits at remaining Portakabin business help to cut group loss to £28m
3 days ago

Bidding set to start on £2bn East London cultural quarter

London Legacy Development Corporation set to procure shell and core work
3 days ago

Building worker critical after being crushed by JCB

Digger at Hebburn housing site believed to have reversed into worker
3 days ago

Plant test cheats website dodges closure threat

CITB chiefs battling to close down site undermining tests for machinery drivers
4 days ago

Green light for £18m Midland Metro extension

Preparatory utility diversion works to start immediately
4 days ago

Hill wins approval for £100m east London housing scheme

Work to start on Walthamstow triple towers this autumn
4 days ago

Construction workers win inflation busting pay rise

Deal agreed but unions warn pay agreement is "no longer fit for purpose"
4 days ago

Cameron resigns as exit vote sends markets crashing

New Prime Minister to be elected by October
3 days ago

Costain to use more drones to make sites safer

Unmanned aerial vehicles can take on hazardous tasks
4 days ago

Bowmer & Kirkland profit jumps by almost half

Derbyshire private builder lifts profit to nearly £40m
4 days ago

Plans for £250m Liverpool resi towers trio

Liverpool developer Elliot plans cluster of 34-storey towers
4 days ago

Specialist wins low road tender court hearing

Judge rules against public client who rejected "abnormally low" bid from FP McCann and Balfour Beatty
5 days ago

Yorkshire plumbing contractor sinks

More than 100 jobs cut after firm fails to reach agreement with HMRC over tax arrears
5 days ago

Bid race starts for £20m Luton science block

University of Bedfordshire will appoint a contractor in September
4 days ago

Betting Spy: Roy’s luck set to run out against France

Quarter Finals could be our Waterloo while Croatia are an attractive price to see off Portugal
4 days ago

Wates wants to meet local suppliers

Meet the Buyer event for local firms to be held on the WIrral: Register now
5 days ago

“Pop up” rail depot sends aggies to North West sites

Temporary plant saves thousands of HGV journeys across region
4 days ago

Morgan Sindall reopens Kent precast plant

Plant remobilises after big order for Tube Northern Line Extension tunnel extension rings
5 days ago

Wolverhampton Uni plans to invite bids for £20m project

Construction of School of Architecture and Built Environment to start in March
5 days ago

Willmott Dixon profits plunge 39%

Willmott Dixon expects residential business to drive profit growth in years ahead
5 days ago

Brexit could raise construction costs by 15%

Galliard Homes fears huge increases in materials and labour prices
5 days ago

Yobs hurl rocks from Dover cliffs at Costain workers

Rocks missed site workers by inches on railway rebuild job
5 days ago