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18/01/2016

Construction industry output falls

Words: Laura Edgar
Construction / Shutterstock_128384549

Output in the construction industry decreased towards the end of 2015, according to figures from the Office for National Statistics.

It has been estimated that output decreased by 0.5 per cent in November 2015, compared with October 2015.

All new work was the largest contributor to the fall, shrinking by 0.7 per cent while housing repair and maintenance dropped by 0.2 per cent.

Within new work, other public works grew by 2.3 per cent, private industrial by 1.7 per cent, and total housing by 0.9 per cent.

Output in the construction industry decreased by 1.1 per cent in comparison with November 2014.

Comparing September 2015 to November 2015 with June 2015 to August 2015, construction output fell by 1.4 per cent, while in comparison with September 2014 to November 2014, it is estimated to have dropped by 0.1 per cent.

Corry Bourke, director of portfolio management at Urban Exposure, a residential development finance provider, said: “The figures highlight that the UK is struggling to build enough homes as well as the constraints in the sector regarding planning, the shortage of key materials and a skilled workforce.

“Despite the slowdown in construction output, there is optimism in the industry as the PMI is above 50, but it will be essential for the government to bring forward its programme to build 400,000 new homes. Equally it’s important that some of the £7 billion being pledged is used to tackle the skill shortages to ensure productivity gains are achieved in the near future.”

For more information, please visit the Office for National Statistics website.

Image credit | Shuttershock

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