Expert says last year was one “best forgotten”

Construction output fell by 0.5% in the last quarter of 2011, according to the latest data from the Office for National Statistics.

The figures show that, by sector, all new work fell by 0.6%, and repair and maintenance fell by 0.3% between the third and fourth quarters of 2011.

Noble Francis, economics director at the Construction Products Association, said that the data reinforced ongoing concerns about the prospects for the industry over the next 18 months.

“This year will see a dramatic 14% fall in public sector construction as spending cuts begin to bite,” he said. “The real concern, however, is that private sector construction is not recovering fast enough to offset this and will fall further during 2012, with the private commercial sector 5% lower than this year.”

Andrew Duncan, managing director of property at Turner & Townsend, said that, for many, “2011 was a year best forgotten”.

“While the run-up to Christmas is often a subdued time in the industry, these meagre Q4 figures cannot be put down to seasonality alone,” he said. “Rather, they attest to the continued lack of sector confidence and lingering macroeconomic concerns about the fate of the eurozone.”