Friday, 11 November 2016
ONS figures published today show that construction output declined 1.1% in the third quarter of 2016. This was revised up, as expected, from the preliminary estimate of -1.4% released last month, due to the incorporation of late data. New work output increased during the quarter, but the fall was led by lower repair and maintenance activity. On an annual basis, total output rose 0.1%.
Rebecca Larkin, Senior Economist at the Construction Products Association, commented: “Whilst today’s figures show a contraction in construction output, surveys across the industry have painted a more positive picture of continued increases in construction activity during the quarter. This suggests that official data are likely to be revised up further as more data becomes available. Certainly, the ONS data show that new construction work remains the primary driver of activity, rising by 0.3% during the quarter. In contrast, repair and maintenance work was reported to have fallen by 3.6%.
“Despite the contraction in Q3, the rise in new orders in Q2, along with broadly positive expectations expressed in industry surveys, points to a favourable performance over the rest of the year. For the year to date, overall construction output remains 0.6% higher than a year ago.”
NOTE TO EDITORS:
The Construction Products Association represents the UK’s manufacturers and distributors of construction products and materials. The sector directly provides jobs for 288,000 people across 22,000 companies and has an annual turnover of more than £55 billion. The CPA is the leading voice to promote and campaign for this vital UK industry.
A full copy of the ONS Construction Output in Great Britain data release can be found here.
FOR FURTHER INFORMATION CONTACT:
Rebecca Larkin, Senior Economist
Tel: 020 7323 3770
Emma Salmon, CPA Marketing and Communications Executive
Tel: 020 7323 3770
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