UK Construction industry output lowest since 90's

The UK Construction industry?s output is now lower than at any point this century. The total volume of construction output in the third quarter of 2012 was the lowest since the second quarter of 1999 according to the Office for National Statistics (ONS) estimates.

Output in quarter 3 of 2012 was down 2.6% from the previous quarter and 11.3% down on the same period of 2011. 7 of the 9 sectors saw a decline, with the largest decrease being in private commercial, which fell by 8.2%.

The 2 sectors which should an increase in work were; new infrastructure and private industrial which saw an increase of 9.9% and 0.3% respectively. Unfortunately the private commercial sector makes up 34% of new work and infrastructure only accounts for just 18%.

Steve McGuckin, UK Managing Director of consultant Turner & Townsend, said: ?With output tumbling to its lowest level in 13 years, it?s almost as if the last decade?s construction boom never happened. The economy as a whole might be on the road to recovery, but the construction sector is stuck in reverse. The fragility of business confidence has taken a toll on private commercial construction. At 17.4% down on the same time last year, it has now fallen past even the low it reached in the 2009 recession.?

?Infrastructure is showing some signs of life, returning to growth after falling earlier in the year. But it represents just 18% of new work, and the industry as a whole is still walking wounded.

?The decline in public sector non-housing work comes as no great surprise as the government?s austerity measures kick in. But at nearly a fifth down on Q3 2011, the drop has been precipitous.

?Many in the industry had hoped that if they could just limp through 2012, next year would be better. But with the sector continuing to contract, the optimists are being forced into a drastic rethink.?

Recipro sourced this article from The Construction Index.

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Source: http://blog.recipro-uk.com/2012/11/uk-construction-industry-output-lowest-since-90s/

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