British construction output down 11.3 percent in Q3

Friday, 09 November 2012 16:19:11 (GMT+3)   |   Istanbul
       

In Great Britain, the estimated total volume of construction output in the third quarter of 2012 fell by 2.6 percent compared with the second quarter of 2012. The fall in the total volume of construction output continues the decline first seen in the third quarter of 2011, according to a report released by the UK-based Office for National Statistics (ONS).

Compared to the same period of the previous year, the estimated total volume of construction output in the third quarter of 2012 fell by 11.3 percent in the region. The ONS noted that the estimated construction output volume in the third quarter of 2012 is the lowest since the second quarter of 1999.

Meanwhile, the latest Construction Trade Survey published by the UK-based Construction Products Association (CPA) shows that construction activity fell sharply in the third quarter, despite a return to growth for the UK economy as a whole. Of greater concern, however, the forward looking indicators of orders and enquiries, were also negative, reinforcing concerns that the sector is unlikely to experience growth until at least 2014.

Commenting on the figures, Noble Francis, economics director of CPA, said, "Conditions throughout construction continued to worsen in Q3, as for the first time we experienced a decline in all construction sectors.  Whilst the public sector construction activity has been falling for some time as a result of the government's cuts, private sector activity is also now falling sharply.  On top of this bad news, infrastructure work declined in Q3, which is extremely concerning given the number of recent announcements from government aimed at stimulating infrastructure activity."

Julia Evans, chief executive of the National Federation of Builders, added, "These figures are a stark reminder that, while the rest of the economy is showing tentative signs of growth, the government should not take its eye off the ball with regards to construction. The government's moves to streamline and speed up planning, fast track and fund infrastructure and fund more house building will not yield immediate results, but they are the building blocks necessary to ensure a sustainable recovery for construction. The more immediate consideration for government is to continue to ensure that access to finance for small and medium-sized businesses remains a high priority."


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