The Civil Engineering Contractors Association (CECA) today said that output figures for the construction industry in Q4 2012 show a welcome return to growth, but that the sector continues to face challenging trading conditions.
Figures produced by the Office for National Statistics show that the estimated total volume of construction output in the fourth quarter of last year grew by 0.9 per cent compared with the previous quarter. The private housing and infrastructure sectors provided the greatest contribution to the increase, growing by 5.9 per cent and 4.2 per cent respectively.
However, the estimated total volume of construction output in the fourth quarter of 2012 fell by 9.3 per cent compared with the same quarter of 2011, continuing the trend of year-on-year falls which began in 2011 Q3. For new public and private infrastructure, the volume of new infrastructure output in the fourth quarter of 2012 was 4.2% higher compared with the previous quarter. Compared with the same quarter a year ago infrastructure new work fell by 6.1%.
Commenting, CECA director of external affairs Alasdair Reisner said:
“Today’s figures show a welcome increase in output, both in the infrastructure sector and across the wider industry, and mirror CECA’s own findings of our members’ current workloads.
“However, it must be recognised that such growth as there is in the industry remains fragile. Positive figures in the infrastructure sector mask significant falls in activity in other areas.
“CECA is working closely with government to identify new opportunities to boost activity in the sector on behalf of our members, and hope this work will continue to bear fruit in boosting output in the future, for the benefit of the wider economy.”
The small rise in the total volume of construction output halts the decline first seen in the third quarter of 2011. The estimated volume of all new work grew by 1.6% and repair and maintenance fell by 0.3% compared with the third quarter of 2012.
The estimated volume of all new work fell by 11.6% in the fourth quarter compared with the same quarter in 2011, while repair and maintenance fell by 4.7%.
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