Construction output drops
ONS statistics have been released, which show a drop in construction output to November 2017. However, overall output remains at a five-year high.
Construction output decreased by two per cent in the three-month on three-month series in November 2017. This is the sixth consecutive period of decline in this series, and represents the biggest contraction since August 2012.
With the latest statistics showing a more comprehensive overview of industry trends, than the more volatile monthly figures, the figures show a worrying overview.
However, despite a continuing fall in the three-month on three-month time series, construction output grew month-on-month, with the figures showing a 0.4% increase in November 2017.
2017 has seen some wide variables for the industry. March saw figures reach a level that was 31% higher than January 2013 – the lowest point of the last five years. With November’s increase, figures now rest at 27.6% above this level.
Since the beginning of 2015, new work, and repair and maintenance have been rising steadily, 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.
Positive growth is also evident in the three-months on year time series, with the 1.6% growth in all work occurring as a result of sustained growth in all new work, and repair and maintenance. The 1.3% increase in all new work was driven primarily by growth in private housing, which grew 6.7%. The 2.1% increase in total repair and maintenance occurred as a result of private housing repair and maintenance expanding by 5.6% compared with the previous three-months a year ago.
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