Reaction to latest ONS construction output figures

The Vinden Partnership react to the latest construction output figures.

The latest figures released from the Office for National Statistics (ONS) has revealed that output in the construction industry fell 1% in July, seeing a reversal of June’s figures which saw a 0.9% rise.

Economists were forecasting growth of around 0.5% for July after June’s unrevised figures.

In contrast to 2014’s figures, output dropped by 0.7%, belying economists’ forecast of a 0.6 rise. This is the first year-on-year fall in construction output since May 2013, when it fell by 2.8%.

A significant contribution to the decline was a fall in the year-on-year numbers of new houses being built, dropping by 2.5%, the first such decline since March 2013.

Peter Vinden, Managing Director of the Vinden Partnership, says the latest figures are “disappointing” but believes steps are being taken to address the underlying issue of the housing shortage.

Peter said: “The dip in the latest construction industry figures are disappointing but long term we should start to see the results of the government’s commitment to house building and the efforts to get young people interested in a career in construction via the skills to build and apprenticeship schemes.

“It is absolutely essential, however, that these efforts and investment are maintained to address the skills gap and housing shortage because the construction industry’s health is vital to the strength of the UK economy.”

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