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Release: Output in the Construction Industry, March and Q1 2013

Released: 10 May 2013 Next edition: 14 June 2013

Contact

Stuart Deneen, Office for National Statistics

Business Indicators and Balance of Payments

construction.statistics@ons.gsi.gov.uk

Telephone: +44 (0) 1633 456344

Categories: Business and Energy, Production Industries, Building and Construction, Output in the Construction Industry, Economy, National Accounts, National Income, Expenditure and Output

Frequency of release: Monthly

Language: English

Geographical coverage: GB

Geographical breakdown: Region

Survey name(s): Construction: Output & Employment

  • Construction output estimates are a short term indicator of construction output by private sector and public corporations within the UK. The estimates are produced and published at current prices (including inflationary price effects) and at constant prices (with inflationary effects removed) both seasonally and non-seasonally adjusted. Construction output is used in the compilation of the UK National Accounts’ production measure of Gross Domestic Product.

  • At 2005 based prices the seasonally adjusted estimated total volume of construction output in Q1 2013 was 2.4% lower than Q4 2012. The volume of Construction Output is now estimated to be at its lowest level since Q4 1998. Private-commercial other new work, which accounts for approximately 22% of total Construction Output, is now 38% below its peak in 2008 and at its lowest level since Q4 1997. Other new work excludes the housing and infrastructure sectors but includes construction of factories, warehouses, schools and offices etc.

  • The quarter on quarter fall into Q1 2013 was dominated by the decline in all new work which fell 3.2% (£500 million). There were falls in almost all sectors, with the exception of private housing repair and maintenance which showed a modest increase of 0.4%.

  • Comparing Q1 2013 to the same quarter one year earlier, the estimated volume of construction output decreased by 6.5%.  New work was lower by 7.8% with large falls in public other new work and private-commercial other new work, which reported decreases of 19.2% and 7.8% respectively.  There was also a 4.1% decrease in repair and maintenance, mainly due to a 6.9% fall in the repair and maintenance of housing.

  • Following a detailed analysis of the three years of monthly data construction data, ONS has found that it is possible to produce monthly seasonally adjusted statistics for Output in the Construction Industry.  These statistics will be introduced in the Quarterly National Accounts on the 27 June 2013 and will be published in all construction releases following this date.

  • These estimates for the construction industry are the second of the main components for the output measure of GDP to be published for March 2013, the third month of Q1 2013.  Estimates for Production were published on 9 May 2013 while the third main component of GDP, Services, will be published on 23 May 2013 alongside the second estimate of GDP for Q1 2013.

  • Further information on the various components of GDP is contained within the Economic background section of this bulletin.

  • The ‘Definitions and explanations’ section in the background notes of this bulletin includes additional information on items contained in this release.

Construction output is a monthly series of the output of the construction industry in both the private and public sectors. In the months before the quarter month, current and constant price not seasonally adjusted data by sector are published. On the quarter months, additional constant price seasonally adjusted index data and value data by sector are published. On the months after the quarter, additional current price data by type of work and region are published.

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

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