According to latest estimates from the Office of National Statistics, total construction output in February 2013 was down 7.0% on February 2012.
The data, which is based on 2005 constant prices, suggests that for three months from December 2012 to February 2013, construction output was down 8.9% on the same period a year before.
New work decreased 10.7% over the three-month period and repair & maintenance output dropped 5.6%. Within the repair & maintenance sector, estimates of housing repairs and maintenance decreased 8.3% while estimates of the volume of infrastructure work decreased by 0.6% over this period.
Comparing February 2013 with January 2013, the volume of construction output increased by 5.5%, the ONS reckons, with rises in nearly all sectors, particularly in repair & maintenance. Housing repair & maintenance increased 8.2% while infrastructure repair & maintenance increased by 12.5%.
However, the growth in February is against a very low January. The volume of construction output in January of £6.9bn was the lowest level since publication of the monthly estimates began in January 2010. February’s volume estimate of £7.3bn is the third lowest level behind January 2013 and December 2012.
Commenting on the numbers, Institution of Civil Engineers director general Nick Baveystock said: “The on-going weakness in infrastructure output is concerning, especially given government’s commitment to infrastructure acting as a catalyst for economic recovery and job creation. The impact of the spending cuts made in 2010 now appear to be feeding down and becoming apparent, notably reducing activity on site.
“Government is rightly starting to think more strategically about how it delivers UK infrastructure and how it can be funded. However with a tough spending review on the immediate horizon, it must act with caution before inflicting further cuts on a sector that is such an important facilitator of growth, both short and long term.”
Construction Products Association economics director Noble Francis said: "It was expected that construction output in February would be considerably higher than in January because weather conditions significantly improved. Despite this rise, it also highlights the underlying trend that output in the last three months was 9.8% lower than a year earlier. Of most concern was the fall in the largest sector, private commercial, which fell 0.4% compared with weather affected January.
"The three months to February represent the worst quarter of construction output since 1987 Q1 and indicate that construction output is likely to fall this year. The Construction Products Association forecasts that output in the industry will fall 2% in 2013 and this will inevitably impact on the wider economy. If government’s announcements to boost housing and infrastructure over the past 18 months are delivered, this could provide some much needed activity on the ground."
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