Construction output slide in July ends two-month growth spurt

Aaron Morby 7 months ago
Share

The pace of construction growth in Britain remains volatile as latest Government figures for output in July showed the industry lurched back into contraction.

The 0.4% fall in output recorded in the General Election month of July curtailed the early summer recovery, which saw a 1.7% increase in May and 0.5% rise in June.

Small falls in activity were seen in both new work (-0.2%) and repair and maintenance (-0.7%).

At the sector level, the drag on growth came from private commercial new work and private housing repair and maintenance, which fell by 2.4% and 1.7%, respectively.

Across the UK as a whole only manufacturing and construction sectors recorded falls in activity.

Clive Docwra, managing director of construction consultancy McBains, said: “After May and June’s figures showed an increase in output, the construction industry was expecting better news for July.

“Despite a modest overall decrease in growth, the industry will flag a dip in growth in five of the nine work sectors as a concern, particularly the 2.4% drop in private commercial new orders.

“Although the figures may not show a post-election bounce, the optimism created by the new government’s announcements on housebuilding means the industry is feeling optimistic for the medium term, borne out by today’s figures showing output grew 1.2% in the three months to July.

“Some early signs of intent from the government on how issues such as confirmation of how nationals planning frameworks can be streamlined, and measures to boost growth in the Budget, will further bolster confidence.”

Latest news

Cardo in talks to buy Breyer roofing arm

More than 100 jobs could be saved at Breyer Roofing
3 hours ago

Quartet win £750m Wales & Western railway deal

Network Rail confirms partners for Reactive and Minor Works framework
2 hours ago

Plans in for £350m London Bridge life sciences hub

Snowsfields Quarter will consist of three buildings containing labs
3 hours ago

Surging labour costs push tender price forecast up

Pick-up in tender prices despite weak growth
3 hours ago

Permasteelisa wins cladding deal on Multiplex city tower

Facade specialist wins work on Fenchurch Street ‘hanging gardens’ tower
3 hours ago

Wates wins fit-out for Manchester First Street Hub

Smartspace arm secures another Government hub deal
24 hours ago

Peel Ports reveals winners for £750m framework

18 firms win places on deal: Full list
1 day ago

Big trade names dropped in M Group rebrand

Acquisitive group formed from Morrison Utility services in 2016
22 hours ago

Breyer Group files administration notice

Staff hope rival firm could buy assets and save jobs
1 day ago

Former Severfield director takes helm at Embrace Steel

New CEO Martin Kelly aims to step up expansion of steelwork contractor
1 day ago

£302m upgrade funding awarded to FE colleges – list

Cash shared out between England’s 179 college groups
1 day ago

FK Facades thrives but construction arm hit by ISG row

Dispute with failed contractor costs specialist £5.5m
1 day ago

Galliford Try gets go-ahead for Milton Keynes PRS tower

33-storey tower needs gateway 2 approval before work can start
2 days ago

Small house builders get £150m funding for green homes

Developers will have to meet-up to ten new criteria to benefit from interest rate discounts
1 day ago

Lendlease Construction renamed Bovis

US private equity firm completes £35m purchase of UK contracting business and rebrands
2 days ago

Breyer Group battles for survival as rivals circle

Housing maintenance firm fights three winding up petitions in a month
2 days ago

Careys facing £2.4m claim by developer over demolition cartel

Giant Hong Kong developer claims it was overcharged on Lots Road Power Station job
2 days ago

Multiplex profit drops a third as revenue rises to £780m

Spate of new orders sets contractor up for three years of work
2 days ago

Galliford Try and Breheny land latest Sizewell C road deals

More infrastructure deals for new nuclear power station
3 days ago

Worker trapped in collapsed septic tank pit

Contractor and director fined after worker suffers multiple fractures
2 days ago

Homes England buys stalled Broad Marsh site

Demolition to finally be completed as developer hunt begins
3 days ago

Vistry go-ahead for 353 homes at Rochester Riverside

Work to start on next phase of Kent town regeneration at end of this year
3 days ago

M&E firm J S Wright collapsed owing £19m

Trade creditors hit for £11.4m by employee-owned Midlands firm
3 days ago

Right to work checks to be extended to self-employed

Government plans crackdown on illegal working and rogue employers
3 days ago

Midlands developer turns to London with £1bn resi schemes trio

SevenCapital plans 1,000 flats in Kensington, Islington and the Isle of Dogs projects
3 days ago

Deck falls off huge scissor lift at Winvic site

Two men seriously injured as platform plunges to the ground
6 days ago

Weston targets Build to Rent with new division

Weston Partnerships signs first deals with asset managers and councils
3 days ago

Bouygues seals deal for £119m Cardiff college campus

Construction to start in June on two new buildings
6 days ago

£140m cash injection to speed-up flood defence schemes

Funding part of £2.65bn investment over the next two years
3 days ago

Bid race starts for £15bn schools framework refresh

DfE throws framework open to more contractors
6 days ago

Contractor services