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Statistical bulletin: New Orders in the Construction Industry, Q2 2012 This product is designated as National Statistics

Released: 07 September 2012 Download PDF

Headline figures in constant (2005) prices, seasonally adjusted

  • The total volume of all new construction orders in the second quarter of 2012 was estimated to have fallen by 8.5 per cent compared with the first quarter of 2012, and was 0.3 per cent lower than the second quarter of 2011.
  • Compared with the first quarter of 2012 there was an increase in public other new work, which grew by 14.2 per cent. However, there were decreases in infrastructure new work (20.1 per cent) and private industrial new work (25.9 per cent).
  • The volume of new orders for infrastructure was estimated to be 39.3 per cent higher in the second quarter of 2012 than in the same period one year earlier.

Introduction

This bulletin shows new orders in the construction industry for the second quarter of 2012. Figures are in constant (2005) prices and are seasonally adjusted. This publication focuses on the latest quarterly figures and includes revisions to earlier periods in line with our revisions policy.

The information in this release relates to contracts for new construction work awarded to main contractors by clients in both the public and private sectors. Also included is speculative work, undertaken on the initiative of the firm, where no contract or order is awarded. The value of this work is recorded in the period when foundation works are started. This series cannot be used to directly predict future output in the construction sector, though it gives an indication of trends in the construction and allied trades industry.

We are constantly aiming to improve this bulletin and our commentary/discussion around the range of tables shown. We would welcome feedback on areas of greatest interest; please get in touch with us via email (construction.statistics@ons.gsi.gov.uk) or telephone (01633 456344).

Orders for new construction

Total Construction New Orders (constant (2005) prices, seasonally adjusted)

Construction new orders
Source: Construction: Contracts & New Orders - Office for National Statistics

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Year-on-year comparisons

Compared with Q2 2011, the total level of new orders for Q2 2012 is 0.3 per cent lower and is now at its lowest level since the new orders series began.

Orders for New Construction (constant (2005) prices, seasonally adjusted)

Great Britain

£ million
    Public housing   Private housing   Infrastructure Public Non-housing Private industrial Private commercial All new orders
2009   3,030 5,529 10,909 14,161 2,555 13,286 49,470
2010   3,312 8,591 8,723 13,274 2,047 14,149 50,097
2011 (R) 2,501 8,971 7,374 8,598 1,927 13,191 42,562
                 
2009 Q1  536 1,161 2,122 2,644 511 3,320 10,294
  Q2  674 1,280 2,915 3,824 706 3,282 12,682
  Q3 982 1,344 3,219 4,117 608 3,005 13,276
  Q4  838 1,744 2,653 3,575 730 3,679 13,219
2010 Q1 956 1,912 2,742 3,692 488 3,588 13,376
  Q2 812 1,759 2,135 3,471 579 3,650 12,407
  Q3 597 2,603 1,579 2,649 501 3,629 11,558
  Q4 948 2,317 2,268 3,462 478 3,282 12,756
2011 Q1 (R) 827 2,346 1,543 2,918 496 3,333 11,463
  Q2 (R) 594 2,137 1,370 1,939 492 3,298 9,830
  Q3 (R) 600 2,217 1,815 2,089 466 3,839 11,026
  Q4 (R) 480 2,271 2,646 1,652 473 2,721 10,243
2012 Q1 (R) 521 2,031 2,388 1,675 714 3,384 10,712
  Q2 543 2,112 1,908 1,912 529 2,800 9,804

Table source: Office for National Statistics

Table notes:

  1. R = Revised since 2012 Q1 publication released on 8th June 2012

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New housing

The volume of new orders for private new housing in the second quarter of 2012 increased by 4.0 per cent compared with the first quarter of 2012 and decreased by 1.2 per cent compared with the same period one year earlier.

Public new housing orders in the second quarter of 2012 increased by 4.2 per cent compared with the previous quarter but decreased by 8.6 per cent compared with the same period one year earlier.

New Housing (constant (2005) prices, seasonally adjusted)

New Housing
Source: Construction: Contracts & New Orders - Office for National Statistics

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New public and private infrastructure

The volume of infrastructure orders in the second quarter of 2012 decreased by 20.1 per cent compared with the previous quarter. However, there was an increase of 39.3 per cent compared with the same period one year earlier.

New Public and Private Infrastructure (constant (2005) prices, seasonally adjusted)

New public and private infrastructure
Source: Construction: Contracts & New Orders - Office for National Statistics

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New public non-housing excluding infrastructure

The volume of public non-housing (excluding infrastructure) orders in the second quarter of 2012 increased by 14.2 per cent compared with the previous quarter and decreased by 1.4 per cent compared with the same period one year earlier.

New Public Non-Housing Excluding Infrastructure (constant (2005) prices, seasonally adjusted)

New public non-housing excluding infrastructure
Source: Construction: Contracts & New Orders - Office for National Statistics

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New private non-housing excluding infrastructure

The volume of private commercial orders in the second quarter of 2012 decreased by 17.2 per cent compared with the previous quarter and decreased by 15.1 per cent compared with the same period one year earlier.

Private industrial orders in the second quarter of 2012 decreased by 25.9 per cent compared with the previous quarter but increased by 7.5 per cent compared with the same period one year earlier.

New Private Non-Housing Excluding Infrastructure (constant (2005) prices, seasonally adjusted)

New private non-housing excluding infrastructure
Source: Construction: Contracts & New Orders - Office for National Statistics

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Revisions

In general, revisions will follow the standard revisions policy for new orders as explained in background note 2 and as shown in the table:

Source of Revisions

Source of revisions Revision periods
New survey data New quarter + revised previous quarter
Revised deflators from BIS New quarter + revised previous 2 quarters
Seasonal factors New quarter + revised previous 5 quarters

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Revisions to New Orders (constant (2005) prices, seasonally adjusted)

Quarter on previous quarter growth rates

      All new work  published in this release All new work estimates previously published   New work revisions
2011 Q1 -10.1 -10.5 0.4
2011 Q2 -14.2 -14.8 0.6
2011 Q3 12.2 14.0 -1.8
2011 Q4 -7.1 -5.2 -1.9
2012 Q1 4.6 4.6 -0.1

Table source: Office for National Statistics

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Background notes

  1. Special Events Policy

    ONS has produced a Policy on Special Events.

  2. Changes to Construction Statistics

    Statistical bulletins for new orders are produced quarterly. Publication dates in 2011/2012 have been placed on the forward release calendar.

    An article describing the improvements made to New Orders and Output in the construction industry (135.4 Kb Pdf) was published in ONS’s Economic and Labour Market Review in March 2010.

    An explanation of the changes introduced in 2010 and the impact this has had on the published series (115.6 Kb Pdf) is available on the ONS website.

    Standard revisions to the new orders series include late responses from respondents, revisions to the price indices used to deflate the current prices to constant (2005) prices and due to seasonal adjustment.

  3. Relevance to users

    The statistical bulletin brings together information on orders for new construction in Great Britain. It draws on data compiled from the Quarterly Survey of Contracts and New Orders, with businesses selected from the Inter-Departmental Business Register (IDBR). The construction industry, which contributes to the overall estimate of Gross Domestic Product (GDP) by approximately 7.6 per cent, covers Sections 41, 42 and 43 of the Standard Industrial Classification 2007 (excluding section 41.1 (property developers).

  4. Deflation and seasonal adjustment

    The headline data are given in constant 2005 prices, seasonally adjusted. Deflators adjust the value series to take out the effect of price changes to give the volume series. Deflation of output is carried out sectorally and a range of relevant tender price and output price indices are used.

    Seasonal adjustment aids interpretation by removing annually recurring fluctuations, for example, due to climate, hours of daylight, holidays or other regular seasonal patterns. Unadjusted data are also available.

  5. User Engagement

    The user engagement section of the ONS website contains results of the survey held in April 2011 regarding users' satisfaction and use of the construction output and new orders surveys.

    Copies of the survey questionnaire are also available on the ONS website.

  6. Further information

    Releases on construction output and employment prior to the transfer to ONS can be found on the BIS website.

  7. Following ONS

    Follow ONS on Twitter (@statisticsons) and Facebook (statisticsons).

    View the latest podcasts on YouTube (ONSstats)

  8. Publication policy

    Details of the policy governing the release of new data are available from the press office. Also available is a list of those given pre-publication access to the contents of this release (82.1 Kb Pdf) .

    National Statistics are produced to high professional standards set out in the Code of Practice for Official Statistics. They undergo regular quality assurance reviews to ensure that they meet customer needs. They are produced free from any political interference.

    As a valued user of our statistics, we would welcome feedback on this release. In particular, the content, format and structure. Please send feedback to the following postal or e-mail address:

    Construction and RSI Statistics, Room 1.227, Office for National Statistics, Government Buildings, Cardiff Road, Newport, NP10 8XG

    E-mail: construction.statistics@ons.gov.uk

    You may re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence or write to the Information Policy Team, The National Archives, Kew, LondonTW9 4DU, or email: psi@nationalarchives.gsi.gov.uk.

  9. Contact Details

    For further information please contact Kate Davies

    Tel: +44 (0)1633 456344

    Email: construction.statistics@ons.gsi.gov.uk

  10. Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk

    These National Statistics are produced to high professional standards and released according to the arrangements approved by the UK Statistics Authority.

Statistical contacts

Name Phone Department Email
Kate Davies +44 (0)1633 456344 Office for National Statistics construction.statistics@ons.gsi.gov.uk
Get all the tables for this publication in the data section of this publication .
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