New figures from the Office for National Statistics have revealed UK construction output fell 0.7 per cent in March, marking the third month of negative growth
According to new figures UK construction output fell in March by 0.7 per cent. This represents the third consecutive period of negative month-on-month growth.
The figures, which were released by the Office for National Statistics (ONS), were worse than the 0.3 per cent fall forecast in the first-quarter gross domestic product (GDP) release.
Recently, the construction industry has been beleaguered by ongoing skills shortages and increasing prices as a result of a sluggish pound.
However, the data also showed a 0.2 per cent increase in construction output during the first quarter of the year. This was in line with the preliminary GDP data for January to March.
What the figures showed
According to the data from ONS, a number of areas in construction did see growth. Unsurprisingly, new housing was up 3.8 per cent on the month, 5.4 per cent on the year, and 0.2 per cent on the quarter. Housing has been a sector that has seen significant development and support from the government.
However, repair and maintenance took a dive, with growth falling by 1.8 per cent month-on-month and 0.2 per cent quarter-on-quarter.
Month-on-year growth saw positive results. Output was up 2.5 per cent in March when compared to the same period in the previous year. This represented the 12th consecutive period of month-on-year growth.
Construction slowdown
McBains Cooper’s chief executive Michael Thirkettle said: “After a period of relative stability following Brexit, recent evidence has pointed towards a slowdown in construction as concern grows about what EU withdrawal will mean for the construction industry. These latest figures bear out such concerns.
“Political parties of all stripes are now set to outline ambitious manifesto targets to increase housebuilding but these will be hollow promises unless they are backed by concerted action to address skills shortages and increase access to finance, meaning no end in sight for the housing crisis.”
