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Construction Output sees Sharpest Fall on Record from Covid-19

Total construction output in Great Britain is expected to fall by 25% during 2020, according to the Construction Products Association. The anticipated decline in output is one of three scenarios for construction output examined by the CPA. Even under this most optimistic of scenarios, the country’s construction activity would suffer its sharpest fall ever recorded.

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Construction Product Manufacturing: Caution Remains for 2020

The Construction Products Association’s State of Trade Survey for 2019 Q4 reports that 43% of heavy side manufacturers each reported a rise or fall in sales compared to Q3. Heavy side products are typically used in the early, structural stages of construction. Sales of light side products, typically used in the later stages of building, were reported to have either increased or decreased by 36% of manufacturers.

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Construction Product Manufacturing Begins to Feel the Headwinds

The construction products manufacturing sector began to feel the impacts of the broader weakness in economic growth and a diminishing pipeline of construction activity in Q3, with heavy side manufacturers reporting a fall in sales and a slowdown in hiring during the quarter.

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Construction Output Contracted in Q2

ONS data published today shows that construction output contracted 1.3% in the second quarter of 2019, reversing the 1.4% growth recorded in Q1 and contributing to a fall in UK GDP, along with the manufacturing sector.

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Further Signs of Weakness in Construction

The construction industry continued to display signs of weakness in the second quarter of 2019, according to the results of a survey of the supply chain’s product manufacturers, contractors, civil engineers and SME builders by the Construction Products Association.

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