UK construction orders slump 14%

UK Construction News 2010:

Outlook grim for construction sector after orders for private and public housing fell by almost 25% in second quarter of year.

Britain’s construction industry seems set for a bleak future after orders suffered a 14% fall between April and June.

The only area that recorded any growth in new orders was the private industrial sector, while orders for private and public housing plummeted by 24% and 23% respectively, according to the Office for National Statistics.

Infrastructure orders such as roadbuilding were down 22%, the biggest fall since 2004.

The latest construction survey from Markit/Chartered Institute for Purchasing and Supply was equally gloomy, showing growth slowing sharply in August, with housebuilding in decline.

The figures come after construction output soared 8.5% in the second quarter, the best performance since 1982. But that is unlikely to be sustained as public spending cuts are expected to hit the sector hard. Several building projects have already been put on hold or scrapped since the election.

Noble Francis, economics director at the Construction Products Association, said: “Today’s figures clearly highlight that the increase in construction output during the second quarter does not represent a sustained recovery.”

Alasdair Reisner, industry affairs director at the Civil Engineering Contractors Association, added: “This is a reality check for the industry. It’s pretty grim out there.”

Although the ONS stresses that the figures can be volatile, construction orders had held above £13bn for the previous three quarters before the sudden plunge to £11.6bn.

Information soruce :