Construction down again
16th January 2018

Construction output decreased by 2% in the quarter to November, making it the sixth consecutive period of decline and representing the biggest contraction since August 2012, according to the latest figures from the Office of National Statistics.

Despite a continuing fall in the three-month on three-month time series however, construction output grew month-on-month, with the figures showing a 0.4% increase in November 2017.

New work and repair and maintenance have been rising steadily since the beginning of 2015, resulting in all work reaching a level peak in January 2017. The increase in output for November is a result of increases in both repair and maintenance, and all new work.

In other sectors, all new work grew marginally, expanding by 0.4%, with levels remaining flat across all types of work. Only private housing provided a positive contribution to growth, the fifth consecutive growth period in this sector, increasing by £100M.

Peter Vinden, Managing Director of the Vinden Partnership said: “The latest figures are a reflection of just how volatile an industry construction is. The three-on-three month shows a fall, while the monthly figures show a rise.

“2017 has seen output fluctuate throughout the industry, but overall the picture is positive. Even with the November drop taken into account, March 2017 saw figures reach a level that was 31% higher than January 2013 - the lowest point of the last five years. November’s increase means figures now rest at 27.6% above this level.”