Construction new work output up 6.8% last year

Aaron Morby 1 year 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

Morgan Sindall wins £30m Soton student digs

Select Property Group has nine scheme in development around the country
4 hours ago

New Bovis Homes boss buys £1.24m shares

Greg Fitzgerald pitches into new job and snaps up 134,369 shares
12 hours ago

Multiplex turnover soars to record £1bn on tower boom

Pre-tax profit slips as builder's revenue jumps by two-thirds
19 hours ago

Groundworker killed by concrete drainage cover

Coourt hears how poorly planned lifting operation at school site led to tragedy
13 hours ago

Graham lands latest Manchester build to rent tower

Work to start this summer on 16-storey tower at Salford Quays
16 hours ago

BAM takes £30m Southampton Uni job

Contractor mobilses for Highfield Campus project
19 hours ago

Sisk set for £37m Sheerness steelwork clear-up

Isle of Sheppey rebar mill clearance plans advance
19 hours ago

Local construction firms demand fair crack at public contracts

North East SME group launches campaign to improve chances for local builders
20 hours ago

Small builders bullish despite rising costs

Rising materials costs and deepening skills shortages dampen optimism
20 hours ago

Roofing firms fined for skylight and snow dangers

Local contractors fined £66,000 each after workers put at risk
20 hours ago

Balfour bags southern England power line upgrade

Pre-construction works to start this year to refurbish five 132kV overhead lines
4 days ago

Atkins agrees £2.1bn takeover by Canadian group

Atkins and Fathful + Gould brands could disappear. Bosses offered £5m to stay on
4 days ago

Sellafield seeks 20-year construction partners

Procurement shake-up to see four long-term partnering deals for vast construction programme
4 days ago

First strike threat hits Hinkley construction work

Bonus row erupts just three weeks after first concrete poured
5 days ago

Construction VAT fraudster ordered to pay back £2.2m

HMRC to claim back cash from crime gang leader who set up a web of bogus building companies
4 days ago

Cemex drivers ballot on strike action

Seventy four Cemex drivers to ballot for strike action over pay
4 days ago

Willmott Dixon poaches Galliford Try northern ops boss

Operations director Andrew Hurcomb will drive expansion in Yorkshire
4 days ago

Paul Sheffield to join Royal BAM board

Former Laing O'Rourke md and ex-Kier boss joins Dutch construction giant
6 days ago

HS2 to make firms name all people involved in bids

HS2 to tighten bid disclosure rules after development partner fiasco
5 days ago

Betting Spy: FA Cup cheer for Spurs and Man City

Tottenham and Man City can land a 4/1 double while Everton look too strong for West Ham
4 days ago

BIM-ready Yorkshire builder goes under

Up to 60 job losses threatened in George Hurst & Sons administration
5 days ago

Leeds Council backs £35m Headingley stadium funding deal

June start set for new joint stand overlooking cricket ground and rugby pitch
5 days ago

Go-ahead for Oxford Balliol College scheme

Sports pavillion and student accommodation to be built around cricket pitch
5 days ago

Work up for grabs across Sussex for subcontractors

Meet the Buyer event in Brighton to highlight raft of opportunities: Register now
5 days ago

Europe’s tallest modular tower rises at Wembley

Modular construction scales new heights as final unit of 679 craned into place
6 days ago

Ardmore swoops on latest £80m Aldgate tower

Vinci understood to be have been originally lined-up for 21-storey apart-hotel job
6 days ago

Skills training plan for next generation of offsite workers

CITB set to launch courses for growing offsite sector
6 days ago

Go-ahead for £250m “triple towers” in Liverpool

Three contractors on shortlist as work set to start this Autumn
7 days ago

Fire hits London hotel under construction

More than 70 firefighters tackle blaze on roof of Ibis hotel in Ealing: Video
6 days ago

Bechtel named for HS2 contract after CH2M row

Second placed bidder Bechtel wins £170m phase two development partner role
6 days ago

Contractor services