Moderate Growth in UK Construction Output Amid Brexit Uncertainty

THE LATEST figures published by the ONS reveal that UK construction output decreased by 0.6% in the three-month on three-month all work series in February 2019.

There has also been a decrease in all repair and maintenance, and all new work series at 1.0% and 0.4% respectively.

The decrease in all new work series was driven by a fall in private commercial new work, which decreased by 3.7% whereas the decrease in all repair and maintenance, was driven by a fall in non-housing repair and maintenance which decreased by 2.6%.

On a positive note, construction output increased by 0.4% in the month-on-month all work series in February 2019. In the month-on-month series, there was a 1.1% increase in all new work, however, all repair and maintenance fell by 1.0% in February 2019.

Clive Docwra, McBains Managing Director

Commenting on the figures, Clive Docwra, Managing Director of construction consulting and design agency McBains, said: “Given the continuing ‘will-we, won’t we’ saga of when the UK will be leaving the EU, the latest figures buck the trend we were expecting. However, although there was moderate growth in February, the general trend is of slowing growth since mid-2018.

“Indeed, the long-term outlook is even gloomier as a weak UK economy, volatile pound and worries over the long-term impact of Brexit mean caution from investors is the watchword, as evidenced by a fall in private commercial new work.  We expect that will translate into a continued, more serious, contraction for the sector over the coming months.”

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here