In constant (2005) prices, non-seasonally adjusted, the total volume of construction output in November 2012 was estimated to have been 9.8% lower than in November 2011.
Comparing the three months from September to November 2012 with the same three months one year earlier (constant (2005) prices non-seasonally adjusted) we see that:
The volume of construction output decreased by 9.1%. New work decreased by 11.2% and repair and maintenance by 5.0%.
The largest contributor to the decline in output was the private commercial sector which fell by 16.2%. This sector is the largest, contributing approximately 22% to total output.
The volume of infrastructure work decreased by 2.4%, although this sector has shown recent signs of recovery growing 12.1% in the latest three months compared with the previous three months.
New public non-housing decreased by 17.2%.
Public housing decreased by 19.5%, the largest decline of any sector (although this sector is relatively small, contributing approximately 4% to total construction output).
The only sectors to show growth, when comparing the three months from September to November 2012 with the same three months one year earlier, was public housing repair and maintenance which increased by 6.6% and private industrial which increased by 0.2%, although the latter sector is small, contributing approximately 3% to total output.
Table 10 of the
data tables (433 Kb Excel sheet)
(current price non-seasonally adjusted, by size band) indicates that 41% of construction output was carried out by businesses with registered employment of over 100 or registered turnover greater than £60 million.
Source: Office for National Statistics
In December 2012, as part of its Statistical Continuous Improvement programme, ONS published a Review of Sample Design and Estimation Methodology for Construction Output.
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.
Copies of the survey questionnaire are also available on the ONS website.
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
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Date of next Output in the Construction Industry publication: 8 February 2013.
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