Construction new work output falls 0.6%

Aaron Morby 13 years ago
Share

Construction output slid in the third quarter of the year as spending cuts began to bite in construction.

The latest Government figures show that new work output fell 0.6%, against the previous quarter.

But the fall in overall construction output was a marginal 0.2%, mitigated by growth in repair and maintenance work of around 0.7%.

The monthly figure for September raised fears that the fall in output my be accelerating, with the industry shrinking by 1.9% compared to August.

    Output Q2/Q3 by sector

  • Private housing: -2.5%
  • Public housing: -8.2%
  • New infrastructure: -0.3%
  • New public building works: +0.5%
  • New private building (ex housing): -8.5%
  • Public housing refurb: -2.2%
  • Private housing refurb: -0.7%
  • Non housing repairs: +2.3%

Overall construction workloads in the period July-September were down 1% against a year ago.

The latest figures from the Office of National Statistics also include big revisions to previously quoted growth figures for the second quarter.

Number crunchers have revised the figure sharply upwards from 1.1% to 2.6%, suddenly recording robust growth for construction over the early summer period.

One industry watcher said: “The latest figures for the third quarter are probably quite meaningless, when the ONS can make such big revisions to previously stated growth figures.

“There is some concern among industry analysts about the scale of these upwards revisions.”

Andrew Duncan, managing director of property at the project management consultancy Turner & Townsend, said: “These figures are further evidence of the strength of the bad economic headwinds buffeting the construction sector.

“As the Eurozone debt crisis goes from bad to worse, a tidal wave of uncertainty is washing across the Channel, swamping any green shoots that may have sprouted in the second quarter.

“Over the summer months sentiment in the sector did improve – or rather became less funereal.

“But these third quarter figures will dash any hopes that the worst is over.

“Output has fallen in two thirds of the industry’s sectors, and where there is growth it is both halting and fragile.

“Already low levels of confidence have been further eroded, and we’ve seen substantial belt-tightening in the private sector.

“The one, meagre, ray of light is the steady increase in levels of repair and maintenance work. But that cannot offset the dropping off of new build work.

“The omens for next year are not good, as the Eurozone saga shows little sign of abating, and the doubt it is sowing risks undermining the fragile progress made by the industry in 2011.”

Latest news

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
2 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
22 hours ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
23 hours ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
23 hours ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
2 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
2 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
2 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
2 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
2 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
2 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
2 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
2 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
3 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
3 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
3 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
3 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
3 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
3 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
4 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
4 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
4 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
4 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
4 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
4 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
4 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
4 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
4 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
4 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
5 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
5 days ago

Contractor services