Reaction to ONS construction industry output figures for June

Reaction to ONS construction industry output figures for June

Gateley Vinden says we can expect further slowdown in the next quarter.

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.”