ONS data published today shows that construction output contracted 1.3% in the second quarter of 2019, reversing the 1.4% growth recorded in Q1 and contributing to a fall in UK GDP, along with the manufacturing sector. On a quarterly basis, output fell in all sectors except commercial, public housing and public housing repair, maintenance and improvement. On an annual basis, Q2 output was 1.4% higher, led by housing and infrastructure.
Rebecca Larkin, Senior Economist at the Construction Products Association, commented: "The sharpest decline in construction activity was the 0.7% monthly fall in June, as a result of unseasonably bad weather delaying work on-site, particularly in the RM&I sectors, which account for around one-third of overall output. However, even though construction lost £521 million in output compared to Q1, the volume of activity was still higher than a year ago. This was driven by clear pockets of activity in house building by housing associations and local authorities, with public housing output reaching a record high level in Q2, and although output fell in quarterly terms for private housing and infrastructure, output from these sectors remains at a historically high level. The performance of other sectors such as commercial offices and retail, industrial factories is less convincing against the backdrop of Brexit uncertainty that complicates decision-making on investments with a high up-front outlay."
NOTE TO EDITORS:
The data for construction output can be found here.
The Construction Products Association represents the UK’s manufacturers and distributors of construction products and materials. We are committed to raising the profile of our industry and members’ businesses, helping grow the market and reducing regulatory risk. The sector directly provides jobs for 333,000 people across 23,000 companies and has an annual turnover of more than £56.5 billion. The CPA is the leading voice to promote and campaign for this vital UK industry.
The CPA produces a range of economic reports including the quarterly Construction Industry Forecasts, Construction Trade Surveys and the State of Trade Surveys. All are available to members or subscribers via our website.
Much of the CPA’s work is focused on serving as the first point of contact for politicians and policy makers requiring advice and information about matters that affect construction products or the wider construction industry. This includes understanding the need for investment into manufacturing or the built environment, new housing and energy-saving retrofitting of the existing housing stock; helping to develop effective, UK and EU legislation, regulations and product standards; and promoting the role of manufacturers in delivering a resource efficient built environment.
FOR FURTHER INFORMATION CONTACT:
Rebecca Larkin, Senior Economist
Tel: 020 7323 3770
Matt McKeown, Communications Executive
Tel: 020 7323 3770