Construction output falls again

Latest ONS building data pours more misery on industry

Construction output in May fell by 6.3%, compared to the same month last year according to the latest data from the Office for National Statistics.

Output from March to May also fell by 7.4%, while new work decreased by 9.9%. Over the same period public housing work decreased by 22.9% while infrastructure fell by 21.3%.

The only sectors that saw in increase are new private commercial, which rose by 0.2%, and non-housing repair and maintenance which rose by 0.5%

Steve McGuckin, UK managing director at Turner & Townsend, said: “There have been some signs of life in the private sector, and many still hope that it will ride to the rescue of a construction industry that has been hit hard by the decline in public spending.

“But these figures clearly show that it hasn’t happened yet. Infrastructure figures also continue to disappoint, so it is not yet the white knight the industry is hoping for.”

Noble Francis, economics director at the Construction Products Association, added: “Although the coalition has consistently made pronouncements of boosting UK construction and the economy, there is little sign of this in reality.”

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