House building tops commercial activity for first time

Aaron Morby 10 years ago
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Private housing building is now the industry’s biggest sector after squeezing commercial building into second place over the late summer.

According to the latest official Government figures for the third quarter private house building work was worth £5.27bn in the third quarter.

This edged it ahead of commercial new building activity which was valued at £5.24bn.

q3

Upward pressure on the quarter and on the month of September came from new housing (up 18% against Q2), which reached its highest monthly level since the series of data began in 2010.

At the same time commercial building output (down 6.2% against Q2) has been broadly sliding in 2014 despite signs of a recovery gaining pace in London.

In September 2014, output in the construction industry as a whole was estimated to have increased by 1.8% compared with August 2014, following a fall of 3% in August and an increase of 2% in July.

In the three months to September construction output grew by 0.8% compared with the second quarter. Third quarter output was also up 2.9% year on year, with new work output alone up 3.7%.

Stefan Friedhoff, Global Corporates managing director for construction at Lloyds Bank Commercial Banking, said: “Although the industry will be relieved to see a recorded increase in output for September – particularly following the shock drop in August – the noises currently surrounding the sector are disconcerting.

“The majority of contractors continue to operate in a challenging, competitive environment and face a steady stream of disruption arising from an ongoing shortage of labour and supplies, reflected in PMI data earlier in the month.”

 

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