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Construction output fell 1.1% during the first quarter of 2016 and was 1.9% lower than a year ago, according to official statistics published by ONS. The drop follows the weakening in project starts reported by ¹û¶³Ó°Ôº last year, with the earlier drop in projects starts reducing the volume of work currently underway on sites across the country. 

Repair & maintenance work saw the most marked weakening in output, slipping 1.1% against the previous quarter and being 1.9% down on a year ago. The decline was attributable to sharp declines in non-housing R&M and social housing RM&I work. 

Output on new build projects slipped 0.6% during the quarter and was just 1.3% down on a year earlier. New work activity was hit by a sharp falls in industrial and infrastructure work, which were respectively 13.9% and 8.1% down on a year ago. Public non-residential work was 2.6% lower. 

In contrast, residential construction has been a bright spot. Total new housing output increased by 4.8% in the quarter and was 3.4% up on a year ago. Although public sector housing activity improved during the quarter, private housing remains the main engine for growth. Private housing output during the quarter was 7.5% up on a year ago, offsetting a 14.3% drop in public new housing.

Construction Output

Source: Construction: Output & Employment – Office for National Statistics