Vinden Partnership reaction to ONS figures
Despite May’s decrease, there is confidence in the market.
The latest figures released about construction output from the Office for National Statistics (ONS) showed that May’s figure had decreased in comparison with April, though the year-on-year figure was favourable, with a 1.3% increase.
Primarily, the year-on-year increase is as it is because of new work, which has jumped by 3.2% in the year.
The increase is even sharper in new work terms when the period between March and May 2015 is compared with the same three months of 2014.
During this time, new work has seen an increase of 4.2%.
Even with the decrease from April to May, Peter Vinden, Managing Director of the Vinden Partnership, believes there is cause for optimism given the “significant steps” made since May’s General Election.
In particular, Peter has pinpointed the progress made on housing starts, which the government says is higher than initial projections.
Figures released throughout the year seem to confirm that housing starts are on the rise, with a 31% increase reported in the quarter to March, while apprenticeships continue to remain important; a term which the government is changing the definition of to amplify it’s importance.
Peter said: “Even though the last month has resulted in a slight drop, there is clearly enough confidence in the market and the continued traction of the construction industry is there for all to see.
“New work over the past 12 months has gone in the right direction and it seems like significant steps are being made through the government’s commitment to housing and creating more apprenticeships.
“Only last month, it was confirmed that new housing starts are as high as they were eight years ago and these increased house building figures can only build confidence as we move forward.
“It cannot be overstated though that the industry needs further investment to make sure that the construction industry in the UK flourishes and viable developments are created.”