GDP figures spark row over real state of construction

Grant Prior 13 years ago
Share

Industry experts have cast doubt over Government figures which show construction output falling by 4.7% during the first quarter of this year.

The numbers have also sparked a review of how the Office for National Statistics compiles its construction numbers.

Construction Products Association Chief Executive, Michael Ankers said: “Today’s GDP estimate includes a fall in construction output of 4.7% in the first three months of the year.

“The scale of this fall in the official figures is extremely surprising and is not consistent with information from construction industry surveys or the experience of the companies and sectors that the association represents.

“The indications are that the construction industry performed better in the first three months than the ONS figures suggest.

“The industry was helped partly by an element of ‘bounce back’ from the last few weeks of 2010 when the extreme weather severely curtailed construction activity in many parts of the country, and also by the exceptionally mild and dry weather throughout the whole of the first quarter of the year.

“Looking forward, however, the outlook remains very uncertain. The real challenge for the industry is the effect of the public spending cuts in the Comprehensive Spending Review which only really started to have an impact from the beginning of the new financial year in April, and in the short term we do not believe that construction spending in the private sector will be sufficiently strong to compensate for these cuts.

“As a result, the Association’s latest construction forecasts, published in mid April and put together by representatives from across the construction industry, anticipate a fall in output of 1% this year compared with 2010 and a further 2% fall in 2012.

“We are not anticipating a return to growth until 2013, and inevitably this will be a constraint on recovery in the wider economy as construction accounts for nearly 10% of GDP.”

Number crunchers at the ONS  are concerned that construction companies are using invoices, which can reflect work completed up to 120 days earlier, to supply information about the value of work done over a period.

Graham Sharp, head of construction statistics at the ONS, told the Financial Times: “A number of the businesses we were chasing for data started telling us they had just finished the invoices and could now fill in the forms.

‘The problem is, some of the invoices could be relevant to work done in an earlier period and not the one we are looking at.”

Latest news

Carpenter killed by falling timber frame panels

Court fines specialist contractor £8,000 after site tragedy
19 hours ago

Road sweeper specialist files administration notice

Go Plant lodges court notice
1 day ago

Anglian Homes rides in to finish crashed Everest contracts

Rival doubled glazed window specialist commits to complete orders
24 hours ago

Final work starts to connect super sewer to London system

End in sight with 1.5m thick concrete wall to be demolished to link-up to Lee Tunnel sewer system
1 day ago

Legal challenge launched against £1.5bn A66 dualling

Balfour Beatty, Kier and Keltbray must now await outcome of court challenge
1 day ago

John F Hunt wins 24-storey Battersea tower

Specialist to carry-out demolition, enabling works and RC frame construction
2 days ago

William Hare wins steelwork on £500m Broadgate towers

Specialist to work on 2 Finsbury Avenue with McAlpine
2 days ago

McAlpine appoints MD to grow ventures business

Owain Thomas will build on private rental and healthcare development successes
2 days ago

BAM Co-op Live Arena opening delayed yet again

Another gig cancelled last night amid last minute safety concerns
2 days ago

National Grid unveils winners for £9bn network upgrade

New 'enterprise model' to deliver infrastructure schemes quicker and cheaper
3 days ago

Turkish insulation panel maker to build £45m UK factory

Assan Panel to open first UK plant at Freeport East
2 days ago

Expanding consultant Stantec swoops for Hydrock

Stantec UK business expands by a third as 950 staff join from Bristol-based engineer
3 days ago

Contractors wanted for £800m highways deal

Bids invited for Eastern Highways Alliance Framework 4
2 days ago

Galliford Try names group head of infrastructure

David Lowery promoted to Divisional Managing Director – Infrastructure.
2 days ago

Chigwell Group looks at stock market listing

Essex contractor registers as Public Limited Company
3 days ago

A57 Mottram Bypass clears final legal challenge

Balfour Beatty to get go-ahead to start shortly
3 days ago

100 jobs axed as Geoffrey Osborne confirms administration

Chairman Andrew Osborne calls it a 'sad day' as board loses fight for survival
4 days ago

Midgard set for Notting Hill office tower overhaul

Landmark project edges towards final approval after 10-year planning saga
3 days ago

Cumbrian civils firm clinches £40m Sellafield contract

Civils specialist Stobbarts will support McAlpine on groundworks and concrete
3 days ago

Designers named for London 2000-bed student rooms job

Bouygues will build £400m London School of Economics student scheme next to Tate Modern
3 days ago

£117m-turnover contractor files administration notice

ARJ Construction lodges court notice
4 days ago

£1bn London Blackfriars tower blocks approved

Trio of buildings rising to 45, 40 and 22 storeys approved by Southwark Council
4 days ago

Council decides to end Balfour deal after 13 years

Contractor has been maintaining roads across Herefordshire since 2013
4 days ago

Six civils clients to switch to low carbon concrete and steel

National Highways, Northumbrian Water and Sellafield sign fresh decarbonising pledge
5 days ago

Fortem extends homes repair deal across Birmingham

Willmott Dixon owned firm adds another two years to deal worth £170m
4 days ago

Kier wins £118m civil service Darlington hub

Work is expected to start towards the end of this year
5 days ago

Green light for 34-storey Digbeth apartments tower

480 flats will be delivered for Clarion housing association
4 days ago

LHC starts race for major retrofit and decarb framework

Hunt starts for firms to help with 6.1m social homes upgrade target
5 days ago

Windows giant Everest crashes into administration

Around 350 jobs at risk while hunt starts for a buyer to salvage business
5 days ago

Green light for £500m Newcastle health complex

Mixed use scheme will promote healthy living across all stages of life
5 days ago

Contractor services