Construction output continues to decrease
The latest ONS figures for construction output have been released.
The figures show that 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.
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.
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.
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.”
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