ONS reveal construction output down in August

The Office of National Statistics says bad weather contributed to a drop in construction output in August.

According to the latest ONS figures, Construction industry output in August fell by 4.3% in comparison with July.

The figure is also down 1.3% on the same period last year, and represents the first year on year fall since May 2013.

New work decreased by 3.6% on July’s figures, while repair and maintenance was down by 5.6% over the same period.

When looking at June 2015 to August 2015, compared with the three months that preceded it, construction output fell by 0.8%. Repair and maintenance decreased by 3.6% while all new work increased by 0.7%.

Comparison with the same period in 2014 shows that construction output was estimated to have increased by 1.8%, with all new work increasing by 5.6%, while repair and maintenance decreased by 4.6%.

Housing output fell by 3%, with both private and public new housing falling by 1.6% and 9.9% respectively. Compared with August 2014, new housing was down 5.8%, with public housing decreasing dramatically by 28.9%.

In comparison to the previous year, housing output remains high but is down 8% from April’s high.

The ONS said that poor weather conditions and more construction workers being on holiday this year than in 2014 are likely to have played a part in the figures.

Owen Goodhead, Managing Director of specialist construction recruiter, Randstad CPE, however, said that the figures are direct result of the skill shortage within the construction industry.

Mr Goodhead said: “Britain is facing a skills shortage – putting our homes, infrastructure and economy on the line.  Construction in the UK could be expanding instead of retreating if the right people were in the right jobs. But training, skills and flexibility need to accelerate hugely for construction jobs to keep up with demand.

“Huge schemes – like High Speed 2 and the Thames Tideway – are on the horizon, and we face a generational challenge to build enough homes.  If we as a country don’t have the sheer volume of knowhow that’s needed, these projects are more likely to overrun – and political visions of building Britain’s future are more likely to flounder.

“The PM championing the tech sector is important but the construction industry also needs the Government’s time and energy.  Without it, all the Chancellor’s talk of investment in infrastructure will come to nothing.  We are seeing the very real effects on the industry of the 5 year skills gap which will only increase unless we start attracting new people now.”

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