Construction output falls sharply

Aaron Morby 7 years ago
Share

Construction output contracted 10.2% from November to January compared to the same three-months last year.

A near 13% fall in new work output drove the overall decline after large falls in public building and private office building.

There was also a 5.3% decrease in repair & maintenance, mainly due to a big fall in private housing repair and maintenance.

New public housing work fell 20.4% to just £216m and now accounts for just 3% of construction output.

The move volatile monthly figure for total output in January alone was 6.3% lower than in December and 7.9% lower than it was one year ago.

Latest figures for the rolling 12-months showed new output fell 8% compared to the previous year.

Steve McGuckin, UK managing director of the global programme management consultancy Turner & Townsend, said: “Sadly the momentum of the last quarter of 2012 has not been maintained, and the construction sector risks being recast as the fall guy of the British economy.

“Across all construction sectors, output is down once again, with the fall in infrastructure work particularly worrying.

“The government’s hopes of the private sector pumping desperately needed money into infrastructure and helping the economy build its way to recovery look further away by the day.”

He added: “Q4’s brief uptick in total construction output is starting to look like a blip, possibly boosted by projects put on hold during the Olympics and restarted at the end of the year. Shorn of that temporary boost, January’s figures look much less encouraging.

“But for all that, sentiment is improving. We’ve seen brisk levels of activity at the very front end of the industry, particularly in Scotland and Ireland.

“The upbeat tone owes more to fatalism than confidence. While no one expects the sector to take off with a hockey stick recovery, there is a growing sense that things have at least bottomed out,” he added.

“This pragmatism is finally persuading some developers to stop sitting on their hands and start moving again.

“But progress is clearly going to be slow, and a long road lies ahead.”

Latest news

Staff sent home at Harry Fairclough Construction

Warrington contractor goes under after 120 years in business
2 days ago

Strucktor lands M&E package at £460m Raffles hotel

Specialist bags major win from Ardmore on Whitehall conversion job
2 days ago
STRUCKTOR UK

Construction work stops on another Elliot Group tower

Work suspended on £70m The Residence in Salford
3 days ago

London super sewer passes halfway point

Two further TBMs to be launched this year for east part of 25km drive
2 days ago

Entire facade of wind damaged tower to be strengthened

Major remedial programme planned after three cladding panels blown-off
2 days ago

Costain Welsh road job £100m over budget and two years late

Row simmers with Welsh Government about liabilities for cost overruns
3 days ago

BAM trading steady after second half uplift

Rise in profit at BAM Construction offsets fall at BAM Nuttall civils arm
2 days ago

Plan in for £30m East London ice rink

Twin pad ice skating centre will be biggest in southern England
3 days ago

Winvic starts £43m Milton Keynes rental flats tower

Aubrey Place will rise to 18 storeys around a H-shaped footprint
3 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

One million homes with planning permission not built

Council chiefs claim figures show 'the planning system is not a barrier to house building"
3 days ago

Morgan Sindall profit jumps as revenue tops £3bn

Construction margin edges up to 2.2% in bumper year
3 days ago

Laing O’Rourke nets £500m Everton stadium

Work to start later this year on Bramley-Moore Dock stadium
4 days ago

Scotland’s Whyte Crane Hire collapses

11 jobs axed as family-owned mobile crane specialist calls in administrators
3 days ago

Plans go in for HS2 Old Oak Station

Start of construction at HS2’s London super-hub moves a step closer
4 days ago

Opinion: New immigration rules are unworkable on site

Points based system will create severe shortages and is dismissive of construction trades
4 days ago

New minister for HS2 named

Lancashire MP Andrew Stephenson to oversee HS2 and Northern Powerhouse Rail
4 days ago

Plans unveiled for new £150m film studio in Reading

US giant Blackhall Studios keen to invest in the UK
4 days ago

Government cuts flow of EU construction workers

New points based immigration system means end to free movement of labour to sites
4 days ago

Facade panels blown off 33-storey Manchester tower

Caddick Construction and cladding contractor carrying out checks on building
5 days ago

New Museum of London enabling works to cost £40m

Bidders day planned for complex enabling and structural work package
4 days ago

Summer start for 350-flat Nottingham scheme

9-storey block to be built next to Nottingham station
5 days ago

Millwall FC reveal new stadium plan

Plan for phased expansion of the Den with upper stand tiers
4 days ago

Vistry deal to build 1,400 housing association homes

Aster and Vistry will invest £167m in five new sites
4 days ago

Fusion21 names decarbonising framework winners

Sixty eight firms secure places on £250m energy efficiency framework
5 days ago

Speller Metcalfe wins £14m Devon leisure centre deal

New Tarka Leisure Centre to offer ‘endless ski slope’
5 days ago

Bardsley crashed owing £45m to trade creditors

Manchester builder hit by toxic mix of contractual disputes and project delays
5 days ago

Bardsley hit sends Anders Glass under

Manchester glass merchant and glazing contractor crashes
5 days ago

Green light for UK’s first ‘super slender’ resi tower

Broad Street tower in Birmingham will be less than 10m wide but rise to 37 storeys
6 days ago

Higgins bags £44m job at Shredded Wheat Factory site

Over 200 homes planned for Welwyn Garden City site
6 days ago

Contractor services