Orders drop casts doubt on private sector led recovery

Grant Prior 16 years ago
Share

Construction order figures continued their rollercoaster ride today as official Government statistics highlighted a worrying dip in new work during the second quarter.

New construction orders fell 14% compared to the first three months and 9% on the same period last year.

The figures contain worrying data for hopes of a private-sector led recovery with private housing tumbling by 24% compared to the previous quarter and commercial work down 7%

The only bright spot was private industrial orders which rose by 13% compared to last year.

Private and public infrastructure work suffered a grim quarter with a 22% fall.

One contractor told the Enquirer: “The numbers seem to be swinging all over the place but this latest set are very worrying.

“Money was still being thrown around by the Government during the first half of the year and it’s no surprise to see that diving.

“The real worry is that private work, and housing in particular, is also dropping.

“The hope was that private work would take up the slack of reduced public spending but these figures indicate that isn’t happening”

Julia Evans, Chief Executive of the National Federation of Builders said: “The importance of investment is clearly demonstrated by the fact that the only part of the sector to show a rise in orders was private industrial.

“But it is clear that private orders are not going to be enough to offset the losses facing the industry in the public sector arena.

“The government needs to do two things:  it needs to look at value, rather than just the sticker price, when finalising the comprehensive spending review.

“It also needs to take radical action to create the conditions that will help private investment to increase. For example it should reduce regulatory burdens and costs that would enable private investment to replace public funding of new homes.

“When there is investment in construction, both public and private, the rest of the economy benefits as seen in the contribution made by the industry to the growth in GDP in quarter 2.”

Latest news

HS2 closes in on final two civils contract resets

CEO Mark Wild tells watchdog MPs renegotiated main works deals could save £2bn
49 minutes ago

Bovis raids Mace Consult for consulting chief

New MD to build strategic advisory and delivery offer
15 hours ago

Battersea Power Station plans in for final 3.2m sq ft build

Final 16 acres set to nearly double development delivered so far
15 hours ago

HMRC issues warning over construction payslip fraud

Tax man targets bogus payroll companies
44 minutes ago

Prisoners help build new modular jail cells

Inmates working with main contractor Reds10 on North Yorkshire site
40 minutes ago

Helix Construct files administration notice

More than 40 jobs under threat as contractor files notice at High Court
22 hours ago

Road builders urge rethink over £428m RIS3 road cuts

CECA calls for A38 Derby and A46 Newark schemes to be postponed not scrapped
23 hours ago

Renaker strikes S106 deal for next five Manchester towers

£114m affordable housing deal clears way for £1bn Great Jackson Street cluster
23 hours ago

Boardroom fixer Alan Lovell called in to rescue British Steel

Costain, Carillion and Interserve veteran takes chair as Government plots steelmaker’s future
23 hours ago

Walker Modular lands 2,000 bathroom pods deal

Hull factory will supply Bowmer + Kirkland student site in Newcastle
23 hours ago

Glencar set for latest data centre on giant Slough site

Contractor tipped for 30,000 sq m scheme
23 hours ago

McLaren seals go-ahead for £2bn York Central scheme

Phase one work to start next year when site investigation works finish
4 days ago

M&J Evans moves into new market as profits jump

Housing groundworks specialist expands into utilities sector
4 days ago

Berkeley calls for urgent stamp duty reform in Budget

London house builder wants 1% cap for first-time buyers and downsizers
4 days ago

Housing activity dives 5% in July as construction stagnates

Total new work output falls 0.4% in July as industry bumps along the bottom
4 days ago

RSK buys £61m turnover highways contractor MSF

Expanding group takes on another 175 staff in latest deal
4 days ago

OCU smashes through £1bn revenue barrier

Organic growth hits 25% as order pipeline passes £4bn
5 days ago

Higgins cleared to restart stalled Ealing estate rebuild

Firm brought on board to finish final 400 homes on Green Man estate regeneration
5 days ago

Consultant RLB cuts staff numbers

Employees left reeling by sudden round of redundancies
5 days ago

£2bn London Vauxhall Square tower trio approved

Nearly 3,000 homes, co-living units and student beds planned across seven buildings
5 days ago

Seddon replaces Vistry on £40m Salford resi scheme

Council lines up contractor switch for 144-home Ordsall project
5 days ago

Worker died under two tonnes of soil in trench collapse

Two firms fined £1.1m and contracts manager given suspended jail sentence
6 days ago

80 firms win places on £350m Fusion21 repairs framework renewal

Wates, Mears, Equans and Axis among firms named on four-year UK deal
5 days ago

Infrastructure demand helps Clancy to record results

Strong work pipeline and cash position boosts investment in training and plant
6 days ago

McGee boss Fossey takes top job at Permasteelisa

Specialist engineering chief moves to lead global façade giant
6 days ago

Torsion Construction went down owing suppliers £15m

Hundreds of subcontractors left holding unpaid invoices
6 days ago

London Mayor backs 3,000-home Beckton gasworks regeneration

Approval unlocks £250m enabling programme at east London riverside site
6 days ago

Plan lodged to turn BT Tower into 400-room hotel

Landmark retrofit will create 1,000 construction jobs and reopen tower to public
6 days ago

£1bn heatwave hit sparks resilience spending call

Civil engineers push for national review to put hard numbers on benefits of climate adaptation
6 days ago

Vistry pitches plan to unlock 30,000 homes a year

Choice-led shared ownership model would combine buyer mortgages with institutional capital
7 days ago