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ONS Stats Reveal Increase in Construction Output for 2018 Q2

Posted on Aug 21, 2018

The latest data release from the Office for National Statistics has shown that construction output rose 0.9% in the second quarter of the year, following a 0.8% fall in Q1 – with activity disrupted by the severe weather conditions across the UK.

The figures show that output was up 0.8% on the same period the previous year, and revealed that the quarterly industry output matched the level recorded at the end of 2017 at £40.9 billion,.

According to the key facts of the report, the quarter-on-quarter increase was driven by a 2.7% increase in repair and maintenance work, with all new work remaining flat.

Although June 2018 month-on-month growth was driven predominantly by the continued growth in infrastructure new work, which increased by 9.2%.

Speaking to press regarding the latest statistics Rebecca Larkin, Senior Economist at the Construction Products Association, said, “As expected, construction has caught up from its troubled start to the year, with strong growth in May and June as the warmer weather improved ground conditions for sites that stalled during February and March. The industry’s catch-up also helped drive the pickup in Q2 GDP growth to 0.4%.

“As much as it has been a tale of two quarters, there has also been a divergence by type of work. New build activity was unchanged from Q1 and was 0.4% lower than 2017 Q4, as rises in public housing, infrastructure and industrial output were offset by falls in private housing and public sector work. However, all repair and maintenance (R&M) activity rose 2.7% to a record high of £14.2 billion and is now 0.8% higher than at the end of 2017.”