Construction output shrinks again in February

Aaron Morby 10 years ago
Share

Construction output contracted 9% from December to February compared to the same three-months last year.

The fall was marginally better than the 10% drop recorded in the last monthly set of output figures, but indicates the industry is now operating at a level where there is around £1bn less work each month than last year.

A small pick up in output in February of around 5.5% compared to January was put down to the industry recovering from the poor weather at the beginning of the year.

The new monthly figure for February construction output was still down 7% compared to the same period last year.

New work over the three-month period fell 10.7% with public building work down a quarter and private commercial work down 10%.

There was also a 5.6% decrease in repair and maintenance, mainly due to a 8.3% fall in the repair and maintenance of housing.

Construction Products Association Economics Director, Noble Francis said: “It was expected that construction output in February would be considerably higher than in January because weather conditions significantly improved.

“Despite this rise, it also highlights the underlying trend that output in the last three months was 10% lower than a year earlier.

“Of most concern was the fall in the largest sector, private commercial, which fell 0.4% compared with weather affected January.”

    Construction output at 2005 prices

    February  ONS output

Institution of Civil Engineers director general, Nick Baveystock, said: “The on-going weakness in infrastructure output is concerning, especially given Government’s commitment to infrastructure acting as a catalyst for economic recovery and job creation.

“The impact of the spending cuts made in 2010 now appear to be feeding down and becoming apparent, notably reducing activity on site.

“Government is rightly starting to think more strategically about how it delivers UK infrastructure and how it can be funded.

“However with a tough Spending Review on the immediate horizon, it must act with caution before inflicting further cuts on a sector that is such an important facilitator of growth, both short and long term,” he added

Latest news

Structural steel and rebar prices fall sharply

Structural steel prices fall 31% and rebar down 16% from peak, but still above historical levels
2 days ago

Acquisitive OCU swoops for London multi-utility specialist

Modus will be OCU's fifth acquisition in 12 months
2 days ago

Gove goes after Grenfell cladding supplier Arconic

Housing secretary fires off another letter to a Grenfell supplier saying pay up for cladding crisis
2 days ago

Family owned builder files administration notice

Clement Dickens lodges court notice
2 days ago

New street works regime to clamp down on pothole pain

New regs come into force over stricter inspection regime for utility street works road reinstatements.
2 days ago

Steel trade body opens quality scheme to all steelwork firms

BCSA admits non-members to key steelwork registration scheme
2 days ago

Mace raises carbon ‘handprint’ savings target for clients 10-fold

Mace hikes client carbon savings target it will deliver from 1m to 10m tonnes
2 days ago

Squibb confirms appeal against bid rigging fine

Demolition specialist joins Keltbray in appealing against CMA penalty
3 days ago

Bigger projects help Wates hit record turnover

Size of average construction contract taken on hits £43m
3 days ago

12 firms in fight to renew £1bn North West Construction Hub deal

Race starts for medium value building framework covering projects between £3m-£8m
3 days ago

Former Inland Homes chief to invest £2.5m in cash raise

Cash-strapped developer hopes to raise £4.6m in share sale closing today
3 days ago

Ten firms sign £3bn L&Q homes upgrade deal

15-year deal will include fire safety, energy retrofits, bathroom and kitchen upgrades
3 days ago

Groundworks firm Conlon saves piling specialist

Work restarts on Abbey Pynford sites after acquisition
4 days ago

BAM Farrans JV installs Great Yarmouth bridge leaves: Video

Watch civil engineering feat in action as 770 tonne bridge leaves lowered into place
4 days ago

Gove invites Kingspan for talks on fire safety compensation

Insulation firm urged to pay for its part in cladding crisis after unveiling record profits
4 days ago

Galliford Try and Midgard bag 350 homes deal at Brent Cross

Galliford Try will build 249 BtR flats and Midgard 107 flats for sale
4 days ago

Sizewell C project gains key environmental permits

Waste permits allow client NNB Generation Company to move to site investigation and construction environmental approvals
4 days ago

Cost of Robertson school contract soars to £100m

Construction to start next month after cost jumps from original £60m
4 days ago

House building cost inflation eases as build out rates fall

Housing cost inflation expected to grow by 1.4% this quarter
4 days ago

Modular builder ilke Homes hires Deliveroo chief to drive profit push

David Scott charged with making business profitable
4 days ago

£500m Leeds South Bank scheme gets green light

Leeds City Council approves plan for 1,350 flats in mixed-use South Bank development
5 days ago

Galliford Try takes rebid £150m Carlisle Southern Link Road

Main construction works are due to start on 8km road in June
5 days ago

Arup takes stake in graphene-enhanced concrete venture

New concrete additive Concretene™ promises 30% savings in CO2 emissions
5 days ago

Winners revealed on £1.42bn materials framework

Thirteen builders merchants land places on huge procurement deal for social landlords
5 days ago

Travelodge eyes plans for another 300 hotels

Hotel giant writes to local councils offering partnership deals with a £3bn investment target
5 days ago

Balfour Beatty to invest £60m in pop-up EV chargers

New Urban Fox JV will roll out 35,000 charge points across the UK over the next decade.
6 days ago

Leading Channel Isles builder goes bust

Jersey-based construction firm Camerons placed in liquidation
5 days ago

HS2 Euston needs full design reset as costs set to double

Spending watchdog warns Euston stop-start delay will simply inflate already ballooning costs
6 days ago

Worker dies on major warehouse site in Stafford

Main contractor Glencar halts work while tragedy is investigated
6 days ago

Sellar switches London flats/hotel plan for 444 student rooms

Developer buys Southwark's King’s Place site for major student room block rising to 11 storeys
6 days ago

Contractor services