Construction new work output up 6.8% last year

Aaron Morby 8 months ago
Share

The Government has released fresh growth figures for construction showing total construction output rose 3.4% last year.

New work according to the official figures actually rose 6.8%, while repair and maintenance fell by 2.2% over the year dragging down overall growth figures.

But industry economists are warning that little can be read into the detail of the growth numbers because the data has been skewed by the inclusion of a former services company into the construction figures in October boosting output by £2bn.

There are also well-documented problems elsewhere with how the official statistics are being compiled.

Taken at face valued the latest growth figures for construction, which have been revised down since last month when official GDP statistics took a first stab are predicting annual industry activity, show a slowdown in growth in the last quarter of 2015.

From October to December, output in the construction decreased by 0.4% compared with the preceding three months. The fall was again led by the RMI slowdown, but new work only managed to edge forward by 0.2% during the period.

Michael Thirkettle, chief executive of construction and property consultancy McBains Cooper, said: “Construction firms will welcome the news that output increased over the last year, but any confidence that this represents a turnaround in fortunes for the industry would be premature, as evidenced by the fact that output fell in the last three months of 2015, compared to the previous three months, July-September.”

A bid surprise faller in the last quarter was infrastructure output, where contractors are gearing up for strong growth.

Screen Shot 2016-02-12 at 11.31.51

Commenting on the 0.5% fall in infrastructure in the last three months against Q3, which also registered as a shock 3.9% fall year-on-year, CECA chief executive Alasdair Reisner said: “What we are seeing is an alarming plateau in infrastructure orders, when we should be seeing strong growth, according to the Government’s forecasts.

“Infrastructure investment is a strong driver of growth in the wider economy. The recent sluggish performance of UK plc is indicative of an infrastructure sector that is yet to reach its full potential.

“We call on the Government takes steps to shore up the UK economy by ensuring that its planned capital investment in the sector goes ahead without delay.”

Brian Green, market commentator at Brickonomics, said: “These figures are extremely difficult to interpret at the moment.

“If I were the Government, having said ‘we are the builders’, I would be keeping a very close eye on the figures and sentiment in construction.

“The industry is central to delivering productivity and it is essential it maintains steady growth for a number of years.”

Latest news

Apple signs major office deal at Battersea Power Station

Computer giant to occupy six floors in the boiler house
6 hours ago

Scotland switches to project bank accounts

From November new building projects over £4m and civils projects over £10m required to use PBAs
12 hours ago

Crossrail builders face two mile trek to the toilet

Anger grows among workforce over site welfare standards
13 hours ago

U+I targets four ‘huburbs’ for 1,000 rental home plans

Ashford, Maidstone, Swanley and Woking schemes worth £250m
13 hours ago

Time to reward construction’s top teams

Only a few tables left for Enquirer awards night after 11,000 people voted for Top Ten winners
12 hours ago

Plan unveiled for £60m UClan Preston gateway

University of Central Lancashire reveals winning design for new student support centre
13 hours ago

AFC Wimbledon cleared to build new £16m stadium

The Dons and Galliard Homes set to go-ahead with 11,000 seat stadium and 600 homes
13 hours ago

Wolseley to close 80 branches axing 800 jobs

Plumbing and builders' merchant chain to streamline UK business
2 days ago

Wates links-up with Trafford Housing Trust to transform eysore

First scheme for new joint venture in the North West
1 day ago

Skanska to start next £70m phase of Helical Bar Old Street site

Skanska confirmed on The Tower at The Bower originally earmarked for John Sisk
2 days ago

Green light for next King’s Cross offices phase

Major 500,000 sq ft crescent-shaped office scheme approved
2 days ago

Newlon starts race for £200m new-build framework

London housing association plans to build 2,000 homes by 2022
1 day ago

Aldi to build 70 new stores next year

Budget supermarket chain aims to invest £300m in UK stores
2 days ago

Morrison Utility Services promotes Jim Arnold to chief executive

Charles Morrison steps up to become chairman of utility contractor
2 days ago

SES wins £43m M&E job at military rehab centre

M&E works secured at Defence and National Rehabilitation Centre at Stanford Hall
2 days ago

Crossrail faces demo over “missing” pay

Civils operatives claim high tech site access system is not registering all hours worked
3 days ago

J S Wright lands £4m building services package

Specialist to start in December on Brentford resi site
2 days ago

Wates appoints B&K director to head Midlands team

John Carlin joins Wates after 24 years with Bowmer and Kirkland
3 days ago

Green light for £200m Manchester Kampus scheme

Demolition work to start this Autumn for 500 private rented flats project
3 days ago

Arup blames Brexit for planned job cuts

Consultation starts on redundancies at London building division
3 days ago

Surrey Uni seeks builder for £34m student hall

More student accommodation planned after O'Hare & McGovern bags first scheme
2 days ago

Focus on Northern homes pays dividends for Gleeson

Owning a Gleeson home "cheaper than council house rent"
3 days ago

BBC starts hunt for contractor to rebuild Eastenders set

Procurement race starts for £15m revamp of Albert Square
5 days ago

London South Bank Uni unveils £500m development plan

University starts hunt for developer to deliver 10-year plan
3 days ago

Lakehouse job losses could hit 170

Redundancy programme continues at Essex contractor
6 days ago

Contractor hunt starts for £185m mixed-use Manchester job

Green light from planners for twin resi towers and office block
6 days ago

Mobile crane explodes causing fireball on M40

Highway contractors are planning to resurface the damaged part of the M40 today
6 days ago

Morgan Sindall on recruitment drive for £750m highways deal

Recruitment events in East Anglia next week: Register now
6 days ago

John Sisk front runner for £28m Manchester PRS flats

Finance secured for developer Mulbury's 135-home Port Street project
6 days ago

Near-miss for Crossrail workers as train hits power cable

Investigation launched after construction train rips electricity panel from tunnel wall
6 days ago