Construction output falls in Q1 2016

Between Q1 2015 and Q1 1 2016, output was estimated to have dropped 1.9%.

Output in the construction industry during the first three months of 2016 was estimated to have fallen 1.1% compared with Quarter 4 of last year.

The latest figures from the Office for National Statistics suggested downward pressure on the quarter came from all new work which decreased by 0.6% and repair and maintenance which decreased by 1.9%.

Between Q1 2015 and Q1 1 2016, output was estimated to have dropped 1.9%.

In March 2016, output in the construction industry was estimated to have decreased by 3.6% compared with February 2016. All new work and repair and maintenance both reported falls of 3.6%.

The preliminary estimate of gross domestic product for Q1 2016 published on 27 April 2016 contained a forecast for construction output of a fall of 0.9%.

This estimate has been revised downwards by 0.2 percentage points and is now estimated to have decreased by 1.1%.

Andrew Bridges, managing director of Stirling Ackroyd, said: “Housing is holding its own within a wider construction sector that’s going the wrong way.

"But in spite of all the scaffolding, Britain’s new homes industry still can’t keep up with the scale of demand for property.

"London is the capital of that mismatch, and should be ripe with construction opportunity.

"But developments are becoming deadlocked in the planning matrix. In the run-up to the mayoral election, four in 10 new homes were rejected by planners. This needs to be tackled.

"Can Sadiq Khan cure London’s housing headache? Priority number one must be driving an acceleration in London’s construction industry. A new mayor must mark a new phase.”