Infrastructure sector remains strong as construction output starts the year slow

  • 13 Mar 2017

The construction industry showed signs of a slow start to 2017 as output dropped by 0.4 per cent in January 2017, according to the latest figures released by the Office of National Statistics.

The monthly business survey also revealed a 1.3 per cent drop in repair and maintenance – citing decreases in public housing and non-housing investment – and a minor 0.1 per cent growth in all new work.

Rolling 3 month and monthly all work, January 2017

Office of National Statistics: Rolling 3 month and monthly output (January 2017).

Despite a disappointing start to the year, output grew on a 3 month on 3 month basis by 1.8 per cent, and the thriving infrastructure sector grew month-on-month consecutively for the third time, increasing 3.5 per cent. Infrastructure is now up 33.7 percent from Q4 2015.

Multi-billion pound projects such as HS2 and Hinkley Point C are likely to see this growth continue, as the infrastructure sector is forecast to grow 28 per cent in the coming years.

Construction output 2016 revisions

Upward reviews for all 4 quarters in 2016 has seen overall annual construction output grow from 1.5 per cent to 2.4 per cent last year. This included a revision for Q4 from 0.2 per cent to 1 per cent.

The revisions also revealed that the annual volume of new orders is now at its highest level since 2008, despite a 2.8 per cent drop in Q4.

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