UK monthly construction output flat

UK construction output figures from the Office of National Statistics for November show no change from the low levels recorded in October. However, output was 1.6 per cent lower than in November 2010 when the industry was severely affected by bad weather.

New work fell by 1.3 per cent (-UK£241m) and repair and maintenance fell by one per cent (-UK£97m). The only increases were in new infrastructure work, which increased by 14.7 per cent (+UK£436m); private commercial new work, which increased by 2.8 per cent (+UK£178m); and non-housing repair and maintenance, which increased by four per cent (+UK£189m). New public non-housing work showed the largest fall of 14.9 per cent (-UK£536m).

Commenting on these figures, Noble Francis, CPA, economics director, said: “Construction output remains extremely subdued having fallen for three of the previous four months and output in the fourth quarter of the year is now likely to fall, mirroring the recent disappointing economic news from the manufacturing sector.

“The recovery in private sector construction is still very sluggish and with the anticipated sharp falls in public spending on construction in 2012, the industry is now expected to see a fall in output of over five per cent this year, with no sign of recovery until 2014.”