Construction output dips in April

Output in the construction industry decreased by 3.7% compared with the same period last year. June 10, 2016 / Isla MacFarlane
Construction output dips in April

Although output fell on a year-on-year basis, output in the construction industry was estimated to have increased by 2.5% compared with March 2016. All new work increased by 2.9% and all repair and maintenance increased by 1.9%.

The underlying pattern as suggested by the 3 month on 3 month movement in output in the construction industry decreased by 2.1%.

New orders for the construction industry in Quarter 1 (Jan to Mar) 2016 were estimated to have decreased by 1.2% compared with Quarter 4 (Oct to Dec) 2015 and decreased by 1.2% compared with Quarter 1 (Jan to Mar) 2015.

“Construction output grew in April after March’s pause for breath, continuing the longer term upward trend,” said Charles Holland, Head of Residential Investment at Marsh & Parsons. “Private new housing is leading this charge which is welcome news both for prospective homeowners and the wave of stakeholders with a vested interest in meeting ambitious housebuilding targets. The levels currently seen may be relatively modest given the extent of what is required, but mighty oaks from little acorns grow and there appears to be a genuine desire to get Britain building again.

“But while certain metrics show improvements, others are more modest than this time last year which shows there is no room for complacency. Since last month’s statistics, London’s new Mayor has given further pledges regarding affordable housing in the capital and expressed the wish that more than 50% of homes on certain developments should be affordable but it remains to see how he intends to deliver on this pledge. London’s housing stock needs replenishing at all levels to remain healthy, but it is particularly important to nurture the supply of first-time buyers realising their property ownership aspirations.”

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