Fall in office and housing activity dents industry output

Aaron Morby 5 months ago
Share

A sharp fall in commercial new work contributed to a 0.2% dip in overall construction output in January, following an equivalent fall in December.

Commercial work fell 6% in January
Commercial work fell 6% in January

The dip was attributed to bad weather but also highlights ongoing fragile market confidence amid wider economic uncertainties.

This decrease in monthly output came solely from a fall in new work (0.7%), while repair and maintenance grew by 0.4%.

Main contributors to the monthly decrease were private commercial new work, and private housing new work, which fell by 6.1% and 1.8%, respectively.

Clive Docwra, managing director of property and construction consultancy McBains, said: The industry will be concerned to see private commercial new work falling so steeply.

“The worry is that longer term stagnation in the wider economy risks having a continued impact in terms of investor uncertainty, which may lead to further projects being put on hold.”

Scott Motley, head of programme, project and cost management at AECOM, added: “A negative reading tallies with other industry barometers and confirms the notable slowdown seen since the start of the year.

“With the UK’s much-needed infrastructure upgrades at the heart of the government’s growth strategy, the latest raft of announcements from Whitehall brings reason for optimism for contractors concerned by challenging economic conditions.

“Indeed, the much-trailed Planning & Infrastructure Bill is the most significant shift towards a properly supported, long-term infrastructure strategy in a generation.

“The Bill should ultimately facilitate greater private sector investment – the need for which is likely to come into even sharper focus as the Chancellor potentially eyes up more cuts to local authority funding ahead of the Spring Statement.”

Latest news

Overbury set for major law firm fit-out win

Contractor tipped for 2 Aldermanbury Square win
2 days ago

China told to lift veil on ‘greyed-out’ London super embassy plans

Ministers give China two weeks to justify redactions in blueprints for £255m Royal Mint Court scheme
2 days ago

Mace wins £1.1bn British Library extension

Work to start on site next year after construction manager contract awarded
3 days ago

Spencer shunts Volker on £29m Waterbeach rail station job

VolkerFitzpatrick misses out despite early contractor involvement
3 days ago

Sisk set for £52m civils works on Wirral garden village

£52m infrastructure works to pave way for 1,600-home Hind Street regeneration
2 days ago

McLaughlin & Harvey scrubs in for £100m Guy’s surgical hub

Eight-storey London elective surgery hub secures government approval
2 days ago

Five bag £1.5bn Notting Hill Genesis home repairs framework

Axis, Cardo, Gilmartin, Wates and Ian Williams on long-term roster
2 days ago

Homes near new pylons to get money off electricity bills

Discounts for people faced with new infrastructure near their homes
2 days ago

Regulatory gridlock ‘knocks confidence’ in construction

RICS urges action as firms struggle with safety Gateway inconsistencies and regional planning delays
3 days ago

McLaren tops contract league with Ebury Estate rebuild

July order haul among top 50 firms rises 14%
3 days ago

Cheetham Hill Construction sold to staff

Howard Chamberlain to step-back from MD role after nearly 60 years
4 days ago

Buyers see sharpest fall in activity for five years

Grim July for construction as all sectors slump
4 days ago

Breheny bags Kent road upgrade contract

Work to start later this month on Maidstone site
3 days ago

Caddick breaks ground on £28m Bilston logistics park job

166,500 sq ft logistics hub to be built at Foundry Business Park
3 days ago

Mears grows profit as maintenance work ramps up

100% contract retention and rising margins deliver strong first-half performance
3 days ago

Cardiff to get 50-storey skyscraper in bold new tower plan

Developer ups height to 50 storeys for BTR landmark near Principality Stadium
4 days ago

Bid race starts for Manchester £1.6bn light rail infrastructure work

Up to ten bidders wanted to compete for Metrolink work
4 days ago

Competitive brick market sees Ibstock struggle to increase prices

Revenue rises but profits dip at materials giant
4 days ago

Collins starts major London city fringe office retrofit

30 Finsbury Square refurb scheme will transform office block
4 days ago

Civils boss banned over classic car sales

Director sold assets cheaply to sister company before folding
5 days ago

Ex-Kier director joins Stepnell to grow specialist units

Mike Smedley steps in as strategic director to lead growth push
4 days ago

Clegg wins £80m Leeds office scheme

Eight-storey office project to rise on former Wellington Plaza site
5 days ago

Avant Homes takes £107m fire safety hit as losses mount

Builder led by Jeff Fairburn lifts provision by £39m for legacy cladding repairs
5 days ago

Profit recovery continues at Laing O’Rourke

CEO Cathal O’Rourke vows to "push the boundaries of what’s possible, in service of humanity"
6 days ago

Torsion clears Gateway 2 for Leeds student scheme

Firm to share lessons from the Gateway 2 process on Kirkstall Road 10-storey job
5 days ago

Bouygues chosen to build new children’s hospital

Construction to start within next 18 months on Cambridge site
5 days ago

Firms readied for £145m Welsh bridge race

Bidding to start this month for River Dee bridge replacement job
6 days ago

Cladding training boost to accelerate remediation work

Free courses for installers and supervisors to help accelerate post-Grenfell work
5 days ago

JRL replaces Ardmore on £150m City landmark revamp

Malaysian developer IJM calls in part-owned contractor for 25 Finsbury Circus job
6 days ago

Green light for Bristol Brabazon over-station office block

YTL to start eight-storey HQ building above new train station ticket office
6 days ago