This bulletin shows new orders in the construction industry for the third quarter of 2012. Figures are in constant (2005) prices and are seasonally adjusted. The 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 foundations 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.
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The estimated total level of new orders for Q3 2012 decreased by 6.7% compared with Q3 2011.
|Public housing||Private housing||Infra-structure||Public Non-housing||Private industrial||Private comm-ercial||All new work|
The estimated volume of orders for private new housing in the third quarter of 2012 fell by 1.6% compared with the second quarter of 2012 and decreased by 5.7% compared with the same period one year earlier.
The estimated volume of public new housing orders in the third quarter of 2012 increased by 13.7% compared with the previous quarter and by 13.0% compared with the same period one year earlier. Although there has been an upward trend in this sector since Q2 2011, this sector has not recovered to the levels seen throughout most of 2009 and 2010.
The estimated volume of Infrastructure new orders saw the biggest third quarter growth of any sector, increasing by 31.4% compared with the second quarter of 2012. This sector also showed the biggest year-on-year growth of any sector, increasing by 43.8% in the third quarter of 2012 compared with the same period one year earlier. As the infrastructure sector has been around 20% of total new orders for the last two quarters, movements in this sector contribute significantly to movements in total orders.
The estimated volume of public non-housing (excluding infrastructure) in the third quarter of 2012 was relatively flat compared with the second quarter, increasing by only 0.3%. New orders in this sector fell by 8.4% in the third quarter of 2012 compared with the same period one year earlier.
The estimated volume of private commercial orders in the third quarter of 2012 decreased by 6.7% compared with the previous quarter and by 35.1% compared with the same period one year earlier. It is the lowest level of orders this sector has seen since the third quarter of 1979.
Private industrial orders in the third quarter of 2012 increased by 13.8% (from a relatively low base) compared with the second quarter and by 26.7% when compared with the same period one year earlier. As private industrial is a much smaller sector than private commercial (6% and 25% of total orders respectively) the fall in the private commercial sector outweighs the growth in the private industrial sector.
In general, revisions will follow the standard revisions policy for new orders as explained in background note 2 and as shown in the table below:
|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|
|All new work published in this release||All new work estimates previously published||New work revisions|
Special Events Policy
ONS has produced an ONS Policy on Special Events.
Changes to Construction Statistics
Statistical bulletins for new orders are produced quarterly. Publication dates in 2013 have been placed on the forward release calendar.
An article describing the improvements made to New Orders and Output in the construction industry was published in ONS’s Economic and Labour Market Review in March of 2010. See ‘Development of construction statistics’ (135.4 Kb Pdf) .
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.
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 6.8%, covers Sections 41, 42 and 43 of the Standard Industrial Classification 2007 (excluding section 41.1 (property developers).
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.
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.
Releases on construction output and employment prior to the transfer to ONS can be found on the BIS website.
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Details of the policy governing the release of new data are available from the press office. Also available is the Pre-Release Access List (87.9 Kb Pdf) of those given pre-publication access to the contents of this release.
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|Kate Davies||+44 (0)1633 456344||Office for National Statisticsfirstname.lastname@example.org|