The ONS said that the seasonally adjusted estimate of construction output in November 2013 is estimated to have fallen by 4.0% (£395m) compared with October 2013. Both sub-sectors contributed to the monthly decline in growth with new work falling 3.9% (£240m) and repair & maintenance by 4.2% (£155m).
The value of new work fell by 3.9%, with the main contribution to this coming from a 7.1% (£140m) decrease in private commercial other new work. Within new work there was also a 3.2% (£50m) fall in private new housing and a 4.8% (£55m) decrease in infrastructure.
Comparing the three months of September to November with the previous three months of June to August, construction output grew just by 0.7%. There were small increases in new work and repair & maintenance of 0.8% and 0.6% respectively.
The ONS said that despite the month on month fall in November the longer term picture is one of growth with construction output estimated to have risen by 2.2% when comparing November 2013 with November 2012, the sixth consecutive monthly year-on-year increase. The 2.2% year-on-year increase in all work was due to a 3.2% increase in new work and a more modest 0.6% increase in repair and maintenance.
This longer term growth is confirmed when comparing the three months, September to November with the same three months of 2012. Over this period all work increased by 5.1%. The components of all work, new work and repair & maintenance, increased by 5.3% and 4.7% respectively.
Steve McGuckin, UK managing director of the global construction consultancy Turner & Townsend, said: "The industry grew steadily in the second half of 2013, so the news that its momentum faded a touch in November is a surprise rather than a shock.
"Such a modest dip in monthly output is unlikely to interrupt the construction industry's upward trajectory. The 3.2% month-on-month decline in private sector housebuilding comes after stellar performance in preceding months.
"The quarter-on-quarter numbers continue to march upward, and the pipeline of new orders remains strong. Confidence is buoyant too.
"Headhunters tell me they're busy again as the industry's big players seek to hire the best talent. And where senior level recruitment leads, more junior jobs will follow.
"The industry has long experience of riding out the peaks and troughs of the economic cycle. Its best players are steadily rolling out their latent capacity to meet growing demand.
"Rapid expansion after such a long lean period means some growing pains are inevitable, but with careful cost planning, the business risk associated with growth can be mitigated.
"November's surprise dip is a minor distraction for a newly confident industry – for most of us, it remains a case of 'don't panic and keep digging'."
Simon Rawlinson, head of strategic research and insight at EC Harris, described the output figures s “a useful reminder that recovery will not be a smooth progression”.
He said: “Despite the lower level of activity recorded in November, the medium term rate of growth has been sustained. Given talk about shortages of labour and material – a steady, sustained rate of growth is what the industry needs – so let's not take one month's strong or weak data out of context.
“Where today's data could have [an impact] is on 4th Quarter GDP - which may not end up being quite as sparkling as some analysts have suggested.”
Got a story? Email news@theconstructionindex.co.uk
