Skip to main content

Output in the Construction Industry, August 2015



In August 2015, output in the construction industry was estimated to have decreased by 4.3% compared with July 2015 and decreased by 1.3% compared with August 2014. This was the first year-on-year fall since May 2013.

All new work decreased in August 2015 compared with July 2015 by 3.6%, repair and maintenance (R&M) decreased by 5.6% over the same period. All work types reported decreases.

The UK’s trade deficit  narrowed slightly, but this is after July’s dire figures


Comparing the 3 months, June 2015 to August 2015, with the previous 3 months, March 2015 to May 2015, construction output fell by 0.8%. Repair and maintenance decreased by 3.6% while all new work increased by 0.7%.
Slump: The construction sector saw its biggest monthly fall in output in nearly two years




When comparing the 3 months, June 2015 to August 2015 with the same 3 months a year ago, construction output was estimated to have increased by 1.8%. All new work increased by 5.6% while repair and maintenance decreased by 4.6%.


Housebuilding: Construction of new housing fell by 3 per cent, putting more pressure on the Government to do something about the shortage of homes that is affecting the UK

The Quarterly National Accounts (QNA) published on 30 September 2015 included an estimate of construction output for Quarter 2 (Apr to June) 2015 of 1.4%, this was an upwards revision to the estimate included in the second estimate of GDP for Quarter 2 (Apr to June) 2015 which showed an increase of 0.2%.

These estimates are consistent with the Quarter 2 (Apr to June) 2015 QNA consistent with Blue Book 2015. Revisions in the data are due to several factors, re-weighting and  re-referencing the indices to 2012 = 100 to align with the National Accounts outputs and the incorporation of late data.

Each component of GDP has a weight within GDP based on its value in 2012. Construction has a weight of 59 in 2012 and contributes 5.9% to GDP; this is lower than the 2011 contribution of 6.4%.



Office for National Statistics: Turning Big Data into an engine of economic growth

Construction makes up about 6 percent of Britain's economy.

In the three months to August -- smoothing out what is often volatile monthly data -- output fell by 0.8 percent, the biggest such decline since March 2013, the ONS said.

The expected drag from construction on gross domestic product in the July-September period contrasts with the second quarter when the sector grew by a quarterly 1.4 percent.

An ONS official said the weak figures for construction in August may have been linked to wet weather during the month.

There might be better news ahead for the sector. An industry survey published last week showed growth in construction hit its fastest pace in six months in September, boosted by the revival of residential projects that had been put on hold earlier in the year, before May's national election.

Friday's data showed housebuilding in August fell by 3.0 percent from July and output in other parts of the sector also contracted for the first across-the-board decline since 2010.

House prices have picked up again after a slowdown in the second half of 2014 caused by tighter mortgage lending rules.






Further Reading 

Residential sales Move up despite lack of property Stock RICS Sept housing report

House building activity in the UK this year is set to top levels seen in 2014, according to new figures released today by NHBC.


Mortgage Lenders and Administrators statistics Bank of England Sept 2015

How low can you go ? speech by Andy Haldane BoE Chief Economist


Three Truths about Finance - Governor of BoE - Mark Carney

Price Index > August data shows an annual price increase of 4.2 per cent with East England most significant movements

Annual house price growth picks up in September whilst regional divergence grows

Bank of England concerns over Property buy-to-let boom 

UK net Mortgage lending leads to five year high in August 2015 BBA


Annual house price growth picks up in September whilst regional divergence grows 

Taylor Wimpey CEO Peter Redfern will lead Labour Housing Redfern Review 

How Nest is revolutionising smart homes with Nest Weave & Creating Most Comprehensive Developer Platform for the Home 

How LG Smart Homes and nest.com are making the best use of IoT

ABB unveils intelligent voice-activated smart home system 

emoov is really moving !

easyproperty.com CEO Rob Ellice says 42 % of UK will soon be using Online Estate Agents

Former Cricket Team Aces Join the Online EstateAgent business model thehomecloud.co.uk


 




property ecommerce is booming !

SOUFUN gets $400M private equity funding from IDG Carlyle and management membersChinese firm to invest in UK housing projects 


House purchase lending pushes to fresh September high ,20 % year on year Mortgage Lending Peak

Princes William and Harry visit DIY SOS street in Manchester UK