According to the ONS, construction output fell 3.4% in the first quarter of 2011, yet a survey of construction purchasing managers by Markit and the Chartered Institute of Purchasing & Supply (CIPS) indicated firm growth as the industry rebounded from the impact of heavy snow in December.
However, Reuters reports this morning that ONS has gone on the offensive against those that challenge the validity of its numbers. The ONS said that its survey better represented small firms, who suffered more than bigger firms earlier this year, and that firms might not interpret its output measure and Markit's activity measure in the same way.
"We still feel confident that the survey we have is the best we could possibly have as an input into GDP," ONS statistician Graham Sharp said.
The ONS said its survey provided the most comprehensive figures on construction output because its data covers a broader range of companies and sectors.
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Another reason for the discrepancy between the ONS data and surveys is that firms use different measures to gauge construction output, not only the work they carried out in the period, but also invoiced work and the value of new orders they have received, the ONS said. It is now working with companies on improving its monthly questionnaire to ensure consistent answers.
The ONS said that construction output by small and medium sized firms had fallen by more than output by larger companies.
Between Q4 2010 and Q1 2011, 39% of the smallest companies surveyed reported an increase in output, with 47% reporting a decrease, the ONS said. However, 52% of the largest companies reported an increase in output, with 48% recording a decrease.
Firms with fewer than 20 employees account for 37% of UK construction output.
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