Construction output shows sharpest fall for five years

The run-up to the General Election saw the largest three-month drop in construction output for in five years, according to latest official figures.

New figures for May showed all work output slipped by 1.2% month on month driven mainly by a 4% fall in infrastructure, equating to a real value fall of £61m.

Other notable downward pressure on construction output came from private commercial work, and non-housing repair and maintenance. Private commercial work shrank at a rate of 1.6%. The only sector to show growth was social housing, up £6% or £21 in cash terms.

The three-month trend figures also slipped back 1.2%, which represented the sharpest fall for five years, albeit after a sustained period of growth.

Mark Robinson, Scape Group Chief Executive, said: “Theresa May’s election gamble has so far been a disaster for the construction industry.

‘The run-up to the General Election saw the largest three-month drop in construction activity in five years, and most worrying was the lack of new work in the infrastructure sector.

He said: “The reality of a vulnerable minority government is that the uncertainty around big projects could continue for some time.

“The Government and MPs of all parties should nevertheless see infrastructure delivery as a top priority, as it is essential to maintaining economic growth and supporting local supply chains. The latest announcement on new bypasses is therefore extremely positive and the government should push ahead on this and other schemes.

“We must not let up on the most ambitious ‘once-in-a-generation’ infrastructure projects either – our latest research shows that if the Government were to consider reforming the UK’s procurement rules it could mean local supply chains would benefit from up to £11.2 billion over the lifetime of the HS2 project through public contracts.”

from Construction Enquirer http://www.constructionenquirer.com/2017/07/07/construction-output-shows-sharpest-fall-for-five-years/

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