Construction output bounces back in second quarter
Construction output increased 0.9 per cent in the second quarter after falling in the first three months of 2018, according to the latest data from the Office for National Statistics.
The industry had seen output slump by 0.8 per cent in Q1 quarter on quarter, as activity was hampered by bad weather. Q2’s increase was led by the repair and maintenance sector, in which output grew by 2.7 per cent quarter on quarter.
Output from new work was flat in the second quarter, however, as new-work sectors experienced mixed demand.
Infrastructure, industrial work and new public housing all saw output increase in Q2, with industrial the fastest growing at 6.2 per cent. However, private housing and public work excluding housing both saw output fall quarter on quarter.
Commercial construction work, which has been on a slight downward trend since the start of 2017, was broadly flat over the three months.
The Walking Action Plan is being introduced alongside measures to tackle air pollution, including the launch of the world’s first Ultra Low Emission Zone introducing minimum emission standards for vehicles, spending £300m on upgrading London’s bus fleet and ensuring Transport for London no longer licenses diesel taxis from 2019.
Construction Products Association senior economist Rebecca Larkin attributed the Q2 growth to firms catching up on work lost at the start of the year.
“As expected, construction has caught up from its troubled start to the year, with strong growth in May and June as the warmer weather improved ground conditions for sites that stalled during February and March,”
Recent PMI data for July also showed a significant jump in activity and reported that new orders hit a 14-month high.
Source: construction enquirer
