In constant (2005) prices, non-seasonally adjusted, the total volume of construction output in August 2012 is estimated to have been 11.6 per cent lower than in August 2011.
Comparing the three months from June to August 2012 with the same three months one year ago (constant (2005) prices, non-seasonally adjusted) we see that:
The volume of construction output decreased by 11.9 per cent. New work decreased by 15.6 per cent and repair & maintenance decreased by 4.2 per cent.
Over the same period, the volume of new public housing work decreased by 20.7 per cent; new private housing decreased by 12.1 per cent; new infrastructure decreased by 18.4 per cent; new public non-housing (excluding infrastructure) decreased by 21.9 per cent and private commercial decreased by 14.4 per cent.
The only sector that increased over this period was new private industrial work, which rose by 1.8 per cent.
Table 10 of the data tables (418.5 Kb Excel sheet) (current prices, non-seasonally adjusted, by size band) indicates that in Q2 2012, 42 per cent of construction output was carried out by companies with a registered employment of over 100 or turnover greater than £60m.
Source: Office for National Statistics
An article outlining the ONS policy on special events is available.
Queens Diamond Jubilee
As part of the celebrations for the Queen's Diamond Jubilee there were changes to bank holidays in May and June 2012. The late May bank holiday moved into June, and there was an additional day's holiday. The change to the holidays counts as a statistical special event in line with ONS's policy on Special Events. Caution should be taken when interpreting the movements in affected outputs that involve May and June 2012.
Olympics and Paralympics
The Olympics took place from 27 July to 12 August 2012 (with a few events starting on 25 July), and the Paralympics from 29 August to 9 September. For most economic statistics, any direct effects of the Olympics will be mainly seen in the August estimates. A few series (such as on international travel and tourism, employment) may have been affected in July, and these estimates have already been published. Wider effects, for example if the presence of the Olympics has influenced the number of non-Olympic tourist visits, may of course affect any of the summer months.
This commentary is intended to help users to interpret the statistics in the light of events. As explained in ONS’s Special Events policy, it is not possible to make an estimate of the effect of the Olympics and Paralympics on particular series only on the basis of information collected in those series. More details of how certain series are affected are in an Information Note, and an article explaining how various elements are reflected in the National Accounts was published in July 2012.
Changes to Construction Statistics
In June 2009 ONS announced major changes to the arrangements for producing construction statistics and indicated that the changes would take effect from the beginning of 2010. From January 2010, a new Monthly Business Survey replaced the quarterly output surveys for construction, and a quarterly new orders survey replaced the previous monthly new orders survey.
Deflation and seasonal adjustment
'Value' of construction output is also known as 'current price' or 'nominal price' construction output. 'Volume' of construction output is also known as 'constant price' construction output. A volume series aims to measure the level of construction output, adjusting for price inflation, allowing comparisons of activity to be made between periods. 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.
Seasonally adjusted monthly estimates will not be available until enough monthly data are available for this to be done reliably. After 3 years of estimates are available, ONS will review if it is feasible to introduce a seasonally adjusted series.
Further information and user feedback
As a user of our statistics, we would welcome feedback on this release, in particular on the content, format and structure. For further information about this release, or to send feedback on our publications, please contact Kate Davies:
Telephone: +44 (0)1633 456344
Construction Statistics, Room 1.227, Office for National Statistics, Government Buildings, Cardiff Road, Newport, Gwent, NP10 8XG
Date of next Output in the Construction Industry publication: 9th November 2012.
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