Construction flat in Q1
14th June 2016

Construction new orders fell flat across the first quarter of 2016, growing by just one per cent over the previous quarter to £15.7 billion.

Private housing new orders were at their lowest for over two years and public sector construction excluding housing totalled £1.7 billion, its lowest quarterly figure for more than four years, according to the latest statistics from the Office for National Statistics & construction industry analysts Barbour ABI.

Office construction however crossed the £2 billion mark for the first time since the great recession and the commercial sector, totalling £4.8 billion, was up 15 per cent compared to a year ago.

Michael Dall, Lead Economist at Barbour ABI, said: “Construction new orders were relatively mixed for the first quarter of 2016 with one of the few bright spots coming from the private commercial sector, which had its highest new orders value for more than 18 months.

“Non-housing public sector & private housing construction decreased in the quarter, with the latter by 15 per cent, which could be seen by many as a worry, with the sector becoming a fierce stalwart in sustaining the economy and the construction sector in general for what has been a significant period.

“It is not incomprehensible that Brexit played a role in the flat figures across the quarter, with the Government as well as private housing businesses being reluctant to commit to large scale construction projects with the influence of the referendum and the implications it could have on the economy still undecided. However, it will be the second quarter’s figures that will be most revealing on the influence of Brexit on construction.”

www.barbour-abi.com