Construction output falls by 3.4% in April

 

Representing the biggest fall seen since August 2012

 

The latest report from the ONS shows construction output fell by £1.35 billion (3.4%) in the three-month on three-month time series in April 2018, stemming from falls in all but one sector. The most notable decline came from infrastructure new work, which fell sharply in the three months to April 2018, decreasing by £379 million.

Elsewhere, other notable falls in output came from total housing repair and maintenance, and private housing new work, which fell by £230 million and £189 million respectively. A survey undertaken in March identified adverse weather as the main contributing factor.

In contrast, the relatively small and volatile private industrial sector provided the only positive contribution to growth in the three months to April 2018, increasing by £29 million.

Following consecutive periods of month-on-month growth in the final two months of 2017, construction output reached a record high. Construction output peaked in December 2017, reaching a level that was 30.3% higher than the lowest point of the last five years, April 2013. Despite three consecutive periods of month-on-month decline at the beginning of 2018, construction output did bounce back slightly in April 2018 and as a result construction remains 23.4% above its lowest point in April 2013.

Key highlights:

• Construction output continued its recent decline in the three-month on three-month series, falling by 3.4% in April 2018; the biggest fall seen in this series since August 2012.
• The three-month on three-month decrease in construction output was driven by falls in both repair and maintenance and new work, which fell 3.0% and 3.7% respectively.
• Following three consecutive months of contraction in the month-on-month series at the start of 2018, construction output experienced a slight bounceback in April 2018, increasing by 0.5%.
• Improvements to the quality and accuracy of regional and sub-sector construction estimates have been made as a result of a methodological improvement
• Total construction new orders also decreased in Quarter 1 (Jan to Mar) 2018, falling by 4.6%, driven by the continued fall in all other work new orders