Construction industry records first fall in output for two years

The output in the construction industry decreased by 1% in July 2015 after increasing by 0.9% in June, recent data from the Office of National Statistics (ONS) has been able to find.

New orders for the construction industry in the second quarter (Apr to June) were estimated to have decreased by 0.4% compared with Quarter 1 (Jan to Mar) and increased by 1.9% compared with the second quarter of 2014.

There were decreases in private commercial (-12%), public other new work (-10.7%) and private new housing (-3.3%) in Quarter 2.

Public new housing, private new housing, public other new work and private commercial work decreased by 5.8%, 2%, 4.5% and 2.9%.

Within the repair and maintenance (R&M) category, the growth in non-housing R&M of 1.4% was offset by housing R&M which decreased by 1.4%.

Rebecca Larkin, Economist at the Construction Products Association (CPA), said while it was disappointing to see a decline, it is believed the industry is on course for growth over the coming years: “Our own surveys along with many from across the industry, however, support our view that the outlook for the industry is positive. We forecast growth of 4.9% in 2015 and 4.2% in 2016, and 21.7% growth between 2015 and 2019.”

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