According to the Office for National Statistics, construction output in October rose by 2.2% compared with September and by 5.3% compared with a year earlier. In addition, the ONS has also made significant revisions to output during the first three quarters of 2013, which will also boost UK GDP. Buoyant construction new orders for Q3 should also ensure further industry growth into 2014.
Commenting on the ONS figures, Dr Noble Francis, Economics Director at the Construction Products Association said: "The latest output figures highlight that the recovery in construction since the weather-affected Q1 continues unabated. Growth of 2.2% in October adds to the upward revisions in output during the first three quarters and overall this will boost UK economic activity by an additional £1.5 billion.
"Unsurprisingly, private housing has been the key driver of recent output growth. Demand in the housing market has been boosted by Help to Buy and, as a consequence, output in the sector rose 6.2% in October compared with September and 16.9% compared with a year earlier. In addition, output in the largest construction sector, private commercial, rose 0.8% in October compared with September and grew 8.7% compared with a year ago, driven primarily by major projects in London.
"Looking forward, the ONS also reported that new orders for construction in Q3 were broadly flat compared with Q2 but considerably higher than one year earlier, with double-digit annual growth in the private housing and commercial sectors, suggesting that the recent growth should also continue into 2014."
ENDS
NOTE TO EDITORS:
The Construction Products Association represents the UK’s manufacturers and suppliers of construction products, components and fittings. The Association acts as a single voice for the construction products sector, representing the industry-wide view of its members. The sector has an annual turnover of more than £40 billion and accounts for over 1/3 of total construction output.
FOR FURTHER INFORMATION CONTACT:
Noble Francis
Economics Director
Construction Products Association
Tel: 020 7323 3770 Fax : 020 7323 0307
Mobile: 0791 261 2882
E-mail: noble.francis@constructionproducts.org.uk
Jeff May Marketing and Communications Manager
Construction Products Association
Tel: 020 7323 3770
Fax: 020 7323 0307
Mobile: 0790 447 6166
E-mail: jeff.may@constructionproducts.org.uk
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