Construction output stalls in Q1

Output in the construction industry is estimated to have decreased by 1.1% compared with the previous quarter, according to the Office for National Statistics May 13, 2016 / Isla MacFarlane
Construction output stalls in Q1

Downward pressure on the quarter came from all new work which decreased by 0.6% and repair and maintenance (R&M) which decreased by 1.9%, the Office for National Statistics said.

In March 2016, output in the construction industry was estimated to have decreased by 3.6% compared with February 2016. All new work and repair and maintenance both reported falls of 3.6%.

However, according to Charles Holland, Head of Residential Development and Investment at Marsh & Parsons, this is a minor blip for the housebuilding industry. “Behind the grey headlines, housebuilding is the one bright spot in the current construction landscape,” he said.” Public and private sector housing are the only sectors to have witnessed an increase in construction output quarter-on-quarter. A minor monthly setback in March can be forgiven, because the direction of travel over the past few years is certainly heading in the right direction – and it’s private housebuilding and development that is firmly at the wheel of this growth.”

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