Construction output grew for the first time in four months in April, according to the latest figures from the Office for National Statistics (ONS).
The industry was 2.5% larger in April than in March, its biggest single increase in 28 months. However, April’s activity remained 3.7% below a year ago.
New orders for the construction industry fell 1.2% in the first quarter of 2016 compared to the previous three months and the same period in 2015.
Professor Noble Francis, economics director at the Construction Products Association, said: “Today’s output figures are, of course, encouraging, but what is of greater interest are the ‘forward-looking’ new orders, which fell 1.2% in Q1. This was likely led by a 17% drop in the private housing sector for Q1 versus Q4, though orders in this sector remained up 18% versus a year ago. Other data from across the sector shows that private house building activity is improving.
“New orders in the infrastructure sector also continue to go from strength to strength, up 27% in Q1 versus Q4 and up 16% versus a year ago. As we’ve highlighted in our own forecasts, this sector looks set to lead activity for the wider industry over near-term.
“The underlying fundamentals for the construction sector remain strong.”
