Latest figures by the Office of National Statistics (ONS) show that UK construction edged ahead on a quarterly basis in the final three months of 2012. However, activity declined by 11 per cent YoY and further falls are expected in the year ahead.
ONS figures published on Friday show the UK economy fell by 0.3 per cent in the final quarter of 2012 compared to the previous quarter and was flat compared to the same quarter a year ago. The main contributors to this fall were the manufacturing and mining and quarrying sectors, which fell 1.5 and 10.2 per cent respectively. Construction overall fared slightly better, growing by 0.3 per cent QoQ, however compared to the same period a year ago activity was down by 11 per cent.
Commenting on these figures, Noble Francis, Economics Director at the Construction Products Association, said: “The GDP figures released today show that the final quarter of last year was extremely difficult with the construction industry 11 per cent lower then a year ago. Recent figures for new orders, which are a forward looking indicator for the industry, were sevent per cent lower than a year ago and as a consequence the coming year is likely to see further contraction from what is already a very difficult position.
“We welcome the Deputy Prime Minister’s acknowledgement today for more investment in infrastructure, as this is something the industry has been calling for, for two years. However, he must turn this sentiment into real activity if we are not to experience further decline across the industry and the wider economy for many months to come.”
