Construction output registers a fall from October to November

06 February, 2014

Construction output fell by 4% in November 2013 compared with the previous month, according to figures from the Office for National Statistics (ONS). New work fell by 3.9% and repair and maintenance by 4.2%. Commenting on the figures, Steve McGuckin, UK managing director of global construction consultancy Turner & Townsend, said, ‘The industry grew steadily in the second half of 2013, so the news that the momentum faded a touch in November is a surprise rather than a shock.’

He elaborates, ‘Such a modest dip in monthly output is unlikely to interrupt the construction industry’s upward trajectory. The 3.2% month-on-month decline in private-sector housebuilding comes after stellar performance in preceding months.

‘The quarter-on-quarter numbers continue to march upward, and the pipeline of new orders remains strong. Confidence is buoyant too, and the latest PMI survey showed that sector sentiment remains close to the 6-year high it posted a month before.

‘Rapid expansion after such a long lean period means some growing pains are inevitable, but with careful cost planning, the business risk associated with growth can be mitigated.’

Longer-term comparisons from the ONS includes an estimated 2.2% increase in output for November 2013 compared with November 2012. This was the sixth consecutive monthly increase compared with the same month a year earlier.

ONS comments, ‘The longer-term growth is confirmed when comparing the three months September to November with the same three months 12 months ago. Over this period, all work increased by 5.1%. The components of all work, new work and repair and maintenance, increased by 5.3% and 4.7%, respectively.

The main contribution to the fall in output from October to November 2013 was a 7.1% decrease in private-commercial other new work.

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