Construction output
continued its recent decline in the three-month on three-month series, falling
by 1.7% in May 2018; representing the third consecutive decline in this series.
The three-month on
three-month decrease in construction output was driven predominantly by a fall
in new work, which also fell for the third consecutive month, decreasing by
2.5% in May 2018.
Following a broadly
negative start to 2018 in the month-on-month series, construction output showed
signs of recovery in May 2018, increasing by 2.9% compared with April 2018.
The month-on-month
growth in construction output was in part driven by the recovery of private
housing repair and maintenance work, which grew 7.3% in May 2018 following a
weak start to the year.
Rebecca Larkin,
Senior Economist at the Construction Products Association, commented: “The
construction industry appears to have caught up with some of the work lost in
February and March due to the freezing ground conditions and snow disruption.
"Month-on-month
gains were evident across all sectors, but were strongest in private housing
repairs, maintenance and improvement (RM&I), the third largest construction
sector, due to warmer weather and longer days.
“Private housing new
build was 8.4% higher than a year earlier, which points to strength in activity
beyond basic catch-up as the industry enters the busier Spring and Summer
selling season. However, for the year to date overall construction output remains
0.3% lower than a year earlier, with particular weakness in public non-housing
(mainly education and health) and commercial, where a significant fall in new
orders signals smaller pipelines of work.”
Mark
Robinson, Chief Executive of Scape Group, said that although the data points to disappointing level of output over the
past three months, it is clear that in May things started to turn around.
"It is
particularly promising to see that total new work increased by £13.7 billion
over the past month alone, including significant contributions from
infrastructure, as well as strong housebuilding," he continued.
“However, we still
have a long way to go to reach output levels needed to keep the UK as a
world-leader in the development of new infrastructure. Our latest research
report finds that over the last two decades, infrastructure output across the
UK has increased by just £70 per person. Despite record investment, the supply
chain has not seen much increase in construction activity on the ground. More
must be done to ensure SMEs benefit from the delivery of new infrastructure
projects, particularly as we head towards Brexit.
“Even greater
investment in infrastructure is also essential if the UK is to remain
competitive. Our rapidly growing population deserves greater investment in the
services they use every day to ensure that they run both efficiently and
effectively. The government should not become distracted by Brexit and must
continue with the business of building; committing to invest in our road and
rail links will improve connectivity between cities and help them to flourish.
Clarity and consistency on Brexit is essential to keep the construction
industry and the wider economy moving in the right direction.”
