Construction output in Great Britain: August 2017

ONS Statistics for construction output for August 2017 have been released, showing that the market has once again contracted, with a 0.8% drop in the three month on three month series.

While the output has dropped, figures do still remain at high levels. Construction output peaked in January 2017, reaching a level that was 29% higher than the lowest point of the last five years, in January 2013. Despite the three month on three month series falling in August 2017, construction output remains 27.3% above this level.

Construction output has grown, however, at 0.6% month-on-month in August 2017, which is being driven by a 1.7% rise in all new work. All new work is providing steady rises to the industry, which is largely being propelled by new housing work. All new work, and repair and maintenance are continuing to show a similar trend.

High points of the statistics are reflected in growth in private housing, which grew 2.3%, and a push in infrastructure investment, which increased by 3.6%.

The month-on-month rise in all new work stemmed from growth in private housing, which grew 2.3% (£140M) and infrastructure, which increased by 3.6%, with private industrial work growing by £79M.

Losses within output are most notable in private commercial work, which fell 2.9% in August 2017. While fifth consecutive monthly losses in public other new work and infrastructure, falling by 6.3% and 1.4% respectively, has contributed to the lowered output figures.

Month-on-year growth was seen across all types of work in August 2017, with the exception of public other new work, which experienced its fifth consecutive period of month-on-year contraction, decreasing by 7.4%.

As a result of the improvements that have been implemented to construction output, revisions can be seen from Quarter 1 (Jan to Mar) 2010, with the annual growth rate for 2016 changing from 2.4% to 3.8%. Leading the way is infrastructure, which itself has been revised from negative 9.2% to negative 3.2%.

 

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