Construction output rises in Q2

Published:  14 August, 2015

In quarter two (April to June 2015), output in the construction industry has increased by 0.2% compared with quarter one (January to March 2015), according to the latest data from the Office for National Statistics (ONS).

Between quarter two this year and the same period last year, output has increased by 2.4%.

Upward pressure on the quarter came from all new work which increased by 1.0%, with private new housing, infrastructure and public other new work increasing by 3.9%, 0.5% and 1.2% respectively.

All repair and maintenance decreased by 1.2% in quarter two, compared with quarter one. Public housing repair and maintenance and non-housing repair and maintenance reported falls of 0.4% and 3.9% respectively.

Output in the construction industry was estimated to have increased by 0.9% in June 2015 compared with May 2015. On the year, output in the construction industry increased by 2.6% in June 2015 compared with June 2014.

Reacting to the data, Philip Prince, director at Constructionline, said: “Given the decrease in output the industry experienced over the last three months of 2014 and in quarter one 2015, this announcement will provide renewed confidence to those concerned that the decline was a long-term issue rather than a blip.

“The future looks positive. Financial markets have stabilised now the General Election has passed and the government’s move to streamline the planning process for new housing development should lead to greater activity in this sector.

“The industry now needs to continue to improve on payment times to reduce cash-flow issues for the smaller businesses that are vital to the supply chain and under continued financial pressure. This will go a long way in ensuring that these companies can continue to trade in the current climate by mitigating the growing issues surrounding availability of these specialist firms.”

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