This bulletin shows new orders in the construction industry for the fourth quarter of 2011.
This information 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 (firstname.lastname@example.org) or telephone (+44 (0)1633 456344). We hope to introduce changes within the Q1 2012 release scheduled for 01 June 2012.
|Public housing||Private housing||Infrastructure||Public Non- housing||Private industrial||Private commercial||All new work|
The volume of new orders for private housing in the fourth quarter of 2011 grew by 8.5 per cent compared with the previous quarter and by 4.5 per cent compared with the same period a year earlier. These are based on constant price seasonally adjusted estimates.
Public housing orders in the fourth quarter of 2011 fell by 26.6 per cent compared with the previous quarter and fell by 57.1 per cent compared with the same period a year earlier. The volume in the fourth quarter is the lowest since the second quarter of 2000.
The volume of infrastructure orders in the fourth quarter of 2011 rose by 41.6 per cent compared with the previous quarter, particularly driven by large increases in rail and electricity. The fourth quarter of 2011 rose by 14.4 per cent compared with the same period a year earlier.
The volume of public non-housing (excluding infrastructure) orders in the fourth quarter of 2011 fell by 17.2 per cent compared with the previous quarter, and is now the lowest volume since quarter 1 of 1997. The fourth quarter of 2011 fell by 49.7 per cent compared with the same period a year earlier. This change means that public non-housing is now the fourth largest sector for orders in quarter 4 2011, while in quarter 4 2010 it was the largest.
The volume of private commercial orders in the fourth quarter of 2011 fell by 18.4 per cent compared with the previous quarter and fell by 3.5 per cent compared with the same period a year earlier.
Private industrial orders in the fourth quarter of 2011 rose by 7.0 per cent compared with the previous quarter and rose by 3.4 per cent compared with the same period a year earlier.
In 2011 there were £46,227 million of new orders in the construction industry (current prices).
In constant (2005) prices, the volume of new orders for 2011 as a whole was 14.1 per cent lower than in 2010. This level of volume for new orders was the lowest since 1980 and 39 per cent lower than its recent peak of 2006. Private housing was the only sector showing growth year on year, increasing by 6.2 per cent compared with 2010.
Large year on year decreases were recorded in public non-housing excluding infrastructure, which fell by 34.7 per cent, public housing, which fell by 28.3 per cent, and infrastructure, which fell by 17.1 per cent. Private industrial and private commercial orders also fell, by 5 per cent and 3.4 per cent respectively. Orders for private industrial in 2011 were 71 per cent lower than the recent peak of 2006.
In general, revisions will follow the standard revisions policy for construction statistics 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|
Sources of revisions to the new orders series in Q4 2011 are as outlined in the table above and in note 1 of Background Notes.
|All new work published in this release||All new work estimates previously published||New work revisions|
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 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 contributors, revisions to the price indices used to deflate the current prices to constant (2005) prices and due to seasonal adjustment.
ONS launched a new website on 28 August 2011 which has improved the way users can access our statistics. However, many existing bookmarks and links no longer work and users will need to update them.
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).
Revisions to previous periods: figures for the recent periods are provisional and subject to revision, mainly in the light of revisions to deflators. Current price figures are revised back one quarter.
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.
Releases on construction output and employment prior to the transfer to ONS can be found on the BIS website.
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|Stephen Curtis||+44 (0)1633 456344||Economic Surveys Divisionemail@example.com|