Reaction to ONS construction industry output figures for June
The Office of National Statistics has released its construction output report for June revealing that a decrease of 0.9% in June compared with May.
June’s figures were 2.2% lower when compared to last year’s figures and marked the six consecutive month of falling output.
In the second quarter of 2016, output was down 0.6% on the first quarter’s figures. A lack of new work was the main driver on the decrease, which fell by 0.8%. The repair and maintenance sector also saw a fall of 0.5%.
When comparing Q2 2016 to the same period last year, construction output fell by 1.4%.
Total new housing and infrastructure decreased by 1.1% and 3.7% respectively compared with the first quarter of 2016.
When compared with Q2 in 2015, there was a fall of 0.1% infrastructure. This was the biggest decrease since the second quarter of 2012.
Housebuilding fell by 0.6% in June compared to May but was actually up 7.6% on the same period last year.
Martin Bennett, a Regional Director of Gateley Vinden – a leading multi-disciplinary consultant company to the built environment said: “While we are still waiting for the button to be pushed on Brexit, the construction industry is likely to remain in a state of limbo.
“That being said, we shouldn’t forget that the summer period is traditionally a quieter period for the sector. Still, this is likely to mean a similar slowdown in the next quarter.
“The construction industry will be hoping for some positive news in the Autumn Statement in shape of a strong commitment on public investment in infrastructure projects.
“There is still a chronic shortage of homes and lots of projects across the country waiting for the green light. The government needs to do what it can to keep Britain building.”