UK construction output and orders boost GDP

Latest figures from Office for National Statistics point to sustained recovery in construction

ACCORDING to the Office for National Statistics (ONS), construction output in October rose by 2.2% compared with September, and by 5.3% compared with a year earlier.

In addition, the ONS has also made significant revisions to output during the first three quarters of 2013 which will boost UK GDP, while buoyant construction new orders for the third quarter should also ensure further industry growth into 2014.

Commenting on the ONS figures, Dr Noble Francis, economics director with the Construction Products Association, said: ‘The latest output figures highlight that the recovery in construction since the weather-affected first quarter continues unabated.

‘Growth of 2.2% in October adds to the upward revisions in output during the first three quarters and overall this will boost UK economic activity by an additional £1.5 billion.

‘Unsurprisingly, private housing has been the key driver of recent output growth. Demand in the housing market has been boosted by Help to Buy and, as a consequence, output in the sector rose 6.2% in October compared with September, and 16.9% compared with a year earlier.

‘In addition, output in the largest construction sector, private commercial, rose 0.8% in October compared with September, and grew 8.7% compared with a year ago, driven primarily by major projects in London.

‘Looking forward, the ONS also reported that new orders for construction in the third quarter were broadly flat compared with the second quarter but considerably higher than one year earlier, with double-digit annual growth in the private housing and commercial sectors suggesting that the recent growth should also continue into 2014.’