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ONS figures highlight continuing construction recovery

Construction output continuing to rise according to latest figures from Office for National Statistics

ACCORDING to the latest figures from the Office for National Statistics (ONS), construction output in the fourth quarter of 2013 rose by 0.2%, compared with the third quarter, and was 4.4% higher than a year earlier.

Commenting on the ONS figures, Dr Noble Francis, economics director at the Construction Products Association, said: ‘The latest construction output figures for the fourth quarter indicate that activity rose for the third consecutive quarter for the first time since 2010. Although the quarterly increase was marginal, it provides further evidence for the continuing recovery in construction.’

 

Private housing was the key driver of the fourth-quarter construction output growth due to wider UK economic recovery and rises in housing demand stemming from government policies such as Help to Buy. Output in the sector increased by 4.5% in the fourth quarter, compared with the third quarter; rose 19% compared with a year earlier; and reached its highest level since the second quarter of 2008.

Infrastructure output also rose by 1.3% in the fourth quarter, compared with the third quarter. However, it still remains 1.4% lower than a year earlier as large capital investment projects previously announced by the Government have yet to translate into any considerable increase in activity on the ground.

Construction output growth in the fourth quarter was highly constrained by work in the public sector and repair and maintenance. Activity in public non-housing, which primarily covers education and health, fell 3.8% compared with the third quarter and was 2.8% lower than a year earlier due to the impact of the austerity cuts.

Repair and maintenance output fell 0.5% in the fourth quarter compared with the previous three months. Although this sector is not particularly high profile, it is still worth £10 billion each quarter and accounts for 37% of total construction, and therefore the fall had a significant impact on the overall growth figure for construction.

 

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