Construction output slide continues into 2018

Aaron Morby 7 years ago
Share

Construction got off to a poor start to 2018 with output continuing to slide after a weak end to 2017.

The latest official Government figures for the three-month on three month period to January show output has slipped again making it the ninth consecutive period after a brief monthly peak in March last year.

Forward indicators for orders in the fourth quarter of 2017 were also down after the spike caused by HS2 work in the third quarter of last year. Although across the year as a whole total new orders were up by 4.3% in 2017, reaching the highest total since 2008, at £55.1bn.

The latest three-month on three-month construction output fall was driven predominantly by the continued decline in private commercial work, which fell by 4.1% in January 2018. Private housing and infrastructure growth failed to offset this decline and a fall across housing and non housing refurbishment and maintenance.

Blane Perrotton, managing director of the national property consultancy and surveyors Naismiths, said: “The headline figures have moved from glacial to grim. Such a sustained slowdown can no longer be dismissed as a blip.

House builders continue to buck the downward trend but the extra £250m added to the economy by the private housing sector in the last quarter was swamped by the declines in other sectors – with commercial property construction alone contracting by £300m.

“2017 saw the highest yearly total of new orders since 2008, but the market’s cautious start to 2018 shows that those two most essential of commodities for developers – confidence and certainty – are now in increasingly short supply.

“And as long as the Brexit melodrama continues, the pattern of intermittent growth and slowdown is likely to hamper the industry’s progress.”

Latest news

Go-ahead for City of London’s tallest tower

1 Undershaft building will equal the Shard in height
1 day ago

Construction T Level scrapped due to lack of demand

Courses canned after less than 100 sign-up for latest round
2 days ago

Five firms clinch £300m Greenwich Uni framework deal

McLaren, Wates, Morgan Sindall, Vinci and Willmott Dixon secure places
1 day ago

Hill Group strikes first Build to Rent deal

House builder agrees finance with Lloyds Living to start Stevenage scheme
1 day ago

Construction output hit by fall in repair and maintenance

Industrial and commercial new work grows despite wider fall in activity
1 day ago

Wates transfers pension scheme to “superfund”

Pension management specialist Clara to take charge of £210m fund
1 day ago

Muse hires new development director for North West

Tom Darby joins from developer Bruntwood
1 day ago

Bid rigging probe launched into school repair work

Firms raided this week with focus on roofing contracts
3 days ago

McLaren hires ex-ISG regional boss for north east expansion

Andrew Beaumont becomes MD of new Yorkshire and North East business
2 days ago

Government commits to four new prisons in seven years

£2.3bn pledged for new prison build programme
3 days ago

Road and rail delays hit revenue at Van Elle

Turnover drops 5% as markets remain challenging for piling specialist
2 days ago

Boot reports ‘noticeable improvement’ in planning system

Government planning reforms already unblocking council planning
2 days ago

Go-ahead to revamp former London city hall

Project will straighten the building's leaning profile with terraces to every level
3 days ago

United Living to divert Midlands gas pipeline

600m pipeline diversion clears way for M54 to M6 link road construction
2 days ago

Credit insurance saves Billington from ISG hit

Steel specialist puts on extra shifts at its plants to cope with demand
3 days ago

M&E specialist Dodd doubles profit on retrofit surge

Family-owned Telford specialist delivers record revenue of nearly £250m
3 days ago

Go-ahead for 800-home Croydon dual towers

One Lansdowne Road build to rent scheme to cost £260m to build
3 days ago

Construction inflation set to return raising tender prices

End of 2024 to mark the bottom of present inflationary trough
3 days ago

Start date for vast Balfour and Costain carbon capture power job

£4bn Teesside project to start construction next year creating 3,000 jobs
4 days ago

Plans go in to start revamp of North Finchley town centre

Developer Regal unveils first details of Barnet masterplan
3 days ago

Glencar bags £18m Big Yellow London store

Six-storey stoarage centre to be built at Staples Corner
3 days ago

Plan unveiled for 31-storey London Fenchurch Street tower

Demolition work to start in 2026 for new office tower
4 days ago

Vinci Building buys tower cranes for first time

Contractor invests in two WOLFFKRAN all-electric cranes at £138m Sheffield site
4 days ago

30 local firms land United Utilities £500m framework

Minor works deal win for North West civils and M&E specialists
4 days ago

Restructure pays off as Higgins returns to profit

Housing contractor recovers from £25.9m loss last year
4 days ago

Former Heathrow boss joins Mace in board rejig

Firm completes string NED appointments to expanded group board
5 days ago

Planning officers to get powers to bypass committee stage for housing

Rayner reform plan to cut out local council planning committees
5 days ago

National Insurance hike to delay construction recovery

Arcadis paints varied picture with full recovery delayed until 2026
5 days ago

Gratte Bros rides out cost rises with profit increase

M&E specialist warns of further upward pressure on wage costs
5 days ago

Sellar’s 36-storey London City office tower approved

Demolition work to start in 2026 at 60 Gracechurch Street site
1 week ago

Contractor services