Rather than contracting 0.3%, as initially thought, the construction industry grew 0.2% in the final quarter of last year, according the latest estimates from the Office for National Statistics. Output jumped 2.0% in December.
In the latest update from Markit Economics Limited, Chris Williamson Chief Economist said:
“The initial estimated fourth quarter decline was always way out of line with the signals from rampant business surveys, which had shown construction activity surging at its fastest rate since 2007 in the latter half of last year.”
Infrastructure spending rose 1.3% for a second successive quarter, while public sector house building jumped 10.5%, accompanied by a 4.5% rise in the private sector. Increased investment by the corporate sector has also buoyed commercial construction.
The survey data suggest that the official data will be revised still higher, adding to the growing welter of evidence to suggest that the economy is enjoying a strong and broad-based recovery.
In the detail, the official data indicate that new construction work rose 0.7% in the final quarter of last year but repair and maintenance fell 0.5%.
However, other public sector new work fell 3.8%, while private industrial and commercial new work slumped 4.9% and 2.1% respectively. Chris Williamson said that both the latter falls “look particularly surprising given the strength of survey data and other signs that the economy is firing on all cylinders at the moment. “
Flood reconstruction to provide further boost to UK construction sector
The PMI is signalling further strong growth in January, which bodes well for a further meaningful contribution from the sector to GDP at the start of the year. While wet weather in many parts of the country may have disrupted building projects, reconstruction activity after the storms should boost the sector again.
The ONS report that output of the sector has now risen for three consecutive quarters, which represents the longest period of consistent growth since 2010. Output had risen some 2.5% in the second quarter and 2.6% in the third quarter. Not surprisingly a 4.0% fall in public sector spending on construction, reflecting ongoing government spending cuts, partially offset a 3.4% rise in the private sector over 2013 as a whole.
Chris Williamson concluded:
“To put the divergence between the official data and the survey evidence in context, the survey data are consistent with growth of well over 2% in the fourth quarter. We therefore suspect there is plenty of scope for this 0.2% growth figure to eventually be revised higher. “
Barhale has completed work on two separate Rapid Action Taskforce Spills projects it is carrying out for Severn Trent.
Börger UK, which has firmly established itself as a leading pump brand since it was set up in Staffordshire in 2004, has moved into bigger, brand-new premises in Shrewsbury.
HUBER Technology UK & Ireland are inviting people to register for their March webinar where they will be providing information about HUBER water intake screens for municipal and industrial applications.
Sulzer has launched a new global Center of Excellence (CoE) for Water Treatment Solutions - the CoE consolidates Sulzer’s wastewater treatment expertise in a unified and global manner.
Hear how Scottish Water has completed its £235 million Ayrshire Glasgow Resilience Project - customers across Greater Glasgow, Ayrshire and East Renfrewshire will now benefit from a more secure and resilient water supply.
Hear how United Utilities is accelerating its investment to reduce spills from storm overflows across the Northwest.
Find out more about the remarkable career opportunities on offer at WSP - scroll down to watch the inspirational video.