There were no real surprises in the monthly figures from the Office for National Statistics. Construction output fell by nearly 5 per cent in the year to February 2012.The volume of output was worth £7.8 billion in February, 4.6 per cent lower than the £8.2 billion in February 2011, but 6.1 per cent higher than the £7.4bn reported for January 2012, providing glimmers of optimism that we could be on track for recovery.
Year on year, the largest falls in output were in public sector and public housing, which fell by 23 per cent and 19 per cent respectively, with public housing output at its lowest monthly level since January 2010, reports Construction News.
Private housing was up 2 per cent over the year to February to reach £1bn, while commercial held steady with a 1 per cent rise to £1.7bn. Infrastructure was down 14 per cent compared to February 2011, at £833 million.
Despite the monthly rise in output, the Construction Products Association said it remains cautious about the industry’s prospects for the rest of the year. Noble Francis, CPA economics director told the magazine: “February’s positive figure has to be seen against the background of a 13 per cent decline in output in January and is 5 per cent below the level of output in February last year.
“Construction faces a very uncertain future with the latest new orders falling 14 per cent, and private sector investment still not growing at a rate to compensate for the sharp falls in public sector spending on construction.
Michael Conroy Harris, construction specialist at international law firm Eversheds, commented: “My own view is that the construction industry, certainly based on its total contribution to the UK economy, is simply a smaller unit than it was in the heyday of 2007 and we need to look at what it is now, rather than what it used to be. The market needs confidence.”
