Fall in office and housing activity dents industry output

Aaron Morby 1 month ago
Share

A sharp fall in commercial new work contributed to a 0.2% dip in overall construction output in January, following an equivalent fall in December.

Commercial work fell 6% in January
Commercial work fell 6% in January

The dip was attributed to bad weather but also highlights ongoing fragile market confidence amid wider economic uncertainties.

This decrease in monthly output came solely from a fall in new work (0.7%), while repair and maintenance grew by 0.4%.

Main contributors to the monthly decrease were private commercial new work, and private housing new work, which fell by 6.1% and 1.8%, respectively.

Clive Docwra, managing director of property and construction consultancy McBains, said: The industry will be concerned to see private commercial new work falling so steeply.

“The worry is that longer term stagnation in the wider economy risks having a continued impact in terms of investor uncertainty, which may lead to further projects being put on hold.”

Scott Motley, head of programme, project and cost management at AECOM, added: “A negative reading tallies with other industry barometers and confirms the notable slowdown seen since the start of the year.

“With the UK’s much-needed infrastructure upgrades at the heart of the government’s growth strategy, the latest raft of announcements from Whitehall brings reason for optimism for contractors concerned by challenging economic conditions.

“Indeed, the much-trailed Planning & Infrastructure Bill is the most significant shift towards a properly supported, long-term infrastructure strategy in a generation.

“The Bill should ultimately facilitate greater private sector investment – the need for which is likely to come into even sharper focus as the Chancellor potentially eyes up more cuts to local authority funding ahead of the Spring Statement.”

Latest news

Domis to start this year on £350m Nobu towers

Developer Salboy gains planning for Viadux second phase in Manchester
2 days ago

Muse submits Oldham town centre regeneration plan

Plan advances for six sites to deliver 2000 homes, an hotel and office space
2 days ago

Construction returns to growth after two tough months

Concern grows Trump turmoil is spooking property investors
2 days ago

Skanska wins £43m Clifton Bridge deal

Contractors says scheme is a "complex project that will be delivered to tight timescales"
2 days ago

Green light for 44-storey Manchester resi tower

Developer Glenbrook to start hunt for main contractor
3 days ago

Ten win £670m Network Rail eastern region small works deal

CK Rail, QTS, Colt and Construction Marine pick up two lots
3 days ago

Mears aims to dominate in compliance and housing upkeep

Firm hails 100% rebid success on a slew of major contract renewals
3 days ago

Investigation after two track workers hit by wagon

Accident in Glasgow during engineering possession
2 days ago

Durkan finance chief joins house builder Thakeham

Paul Kimber confirmed as new Chief Financial Officer
2 days ago

Water win sees Mott MacDonald Bentley hunt for new staff

Recruitment event for the South of England: Register now
3 days ago

Labour master VAT fraudsters target subcontractors

Tax authorities looking to clamp down on payroll fraud
3 days ago

Phoenix ME rides out ISG collapse with record 74% turnover surge

Pre-tax profit up after Phoenix re-engaged on all former ISG jobs
3 days ago

Mace confirmed for £200m London City office retrofit

Four upper floors to be added to 65 Gresham Street
3 days ago

£200m Viking onshore pipeline project approved

55km underground pipeline to be built from Immingham to Theddlethorpe
3 days ago

Plans in for Bristol Brabazon over-station office block

YTL Construction UK to build 8-storey office block
3 days ago

UK Power Networks fined for unsafe street works

Council officers spot unguarded excavations
3 days ago

Lindum profit jumps 28% as turnover nears £200m

507 staff shareholders share in strong year as pre-tax profit hits £10.4m
4 days ago

Universal to build theme park in Bedford

Work to start next year creating 20,000 construction jobs
4 days ago

Go-ahead for £400m Cambridge sewage treatment works

Major greenbelt project pivotal to 8,000-home North East Cambridge scheme
4 days ago

Erith pays down bid-rigging fine over two years early

Total employee ownership bonuses top £5.3m for nearly 450 staff
4 days ago

Network Rail property JV to deliver Cambridge North homes

Blockwork will deliver over 400 homes around local station
4 days ago

Construction worker dies on Essex site

Fatal accident at housing job run by Rose Builders
5 days ago

Pension fund charges hit profits at Wates

Bottom line also hit by closing out construction contracts
5 days ago

Muse submits £35m St Helens transport hub plan

Vinci lined up for project forming part of £100m town centre regeneration
4 days ago

Firms called for input on £108m Selsey coastal defence scheme

10-year construction plan to combat failing sea walls and eroding beaches
5 days ago

Renamed Bovis Construction suffered £16m loss last year

Firm slumped into red before being sold to US group Atlas Holdings
5 days ago

Plans in for £1bn Liverpool Street Station scheme

21-storey offices above station main concourse to help fund upgrade
5 days ago

Project director leaves giant McAlpine car battery site

Change in site team at flagship £4bn Agratas factory
5 days ago

Nexus Infrastructure orders up 11% at half-year

Tamdown housing civils arm orders up despite housing recovery delay
5 days ago

Five firms win £450m Scottish electricity network upgrade

Major investment by Energy company SSEN Distribution
6 days ago

Contractor services