No rise in the UK

UK construction output between February and April this year was 4.7% down on the same period last year, according to figures from the Office for National Statistics (ONS), which also found that comparing April 2013 with March 2013, the non-seasonally adjusted total volume of construction output decreased by 6.5%.

At 2005 prices, the estimated non-seasonally adjusted total volume of construction output in April 2013 was 1.1% lower than in April 2012.

The ONS found that comparing the February to April 2013 period in the UK with the same three months a year earlier, the volume of construction output decreased by 4.7%, and new work was lower by 5.8%.

There were large falls in public other new work – down 17.3% – and private-commercial other new work – down 8.8%. Other new work excludes the housing and infrastructure sectors but includes construction on factories, warehouses, schools, offices, etc. There was also a 2.8% decrease in repair and maintenance mainly as a result of a 7.5% fall in private housing repair and maintenance.

In the non-seasonally adjusted 6.5% decrease in April compared to March 2013, there were decreases in all sectors with the exception of private housing new work – up 3.6%, and repair and maintenance – up 0.4%.

Overall repair and maintenance decreased by 9.7%, mainly because of large falls in infrastructure – down 21.6% – and public housing repair and maintenance – down 18.5%.

Optimism

However, Steve McGuckin, managing director of global construction consultancy Turner & Townsend, felt there were some signs of optimism in the industry.

He said, “The construction industry's long lag times mean there is usually a disconnect between official construction output figures and clients' commitment to projects.

"April's continued bleak output figures are at odds with new projects in design and with construction spend starting to come to market. The best contractors and sub-contractors are becoming selective.”

He said that the still falling output reflected the weak confidence of two years ago when orders were “few and far between”.

"Now we are seeing encouraging signs at the front end of the industry, with confidence slowly returning to places outside London. Public sector construction is not out of the woods yet, with some of the hardest cuts still to bite and questions remain over funding many of the priority projects.”

He said that while there were grounds for some cautious optimism, the industry had seen two false dawns since the crash hit five years ago.

“It is too early to tell if this is the third, but it feels different," he said.