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New orders in British construction down 10% in Q1 from Q4

Friday, 07 June 2013 15:43:14 (GMT+3)   |   Istanbul
       

In constant 2005 prices, seasonally adjusted, the total volume of all new construction orders in Great Britain in the first quarter of 2013 is estimated to have fallen by 10 percent compared to the fourth quarter of 2012, and is 0.2 percent lower than the same quarter of 2012, according to a report released by the UK's Office for National Statistics (ONS).

According to the ONS, the components excluding infrastructure showed positive quarter-on-quarter growth, while a large quarter-on-quarter fall of 49.8 percent was recorded in infrastructure.

Commenting on the figures, Dr. Noble Francis, economics director at the UK-based Construction Products Association (CPA), said, "Recent GDP figures have pointed to signs of growth in the overall economy, but construction has continued to face very challenging conditions with output already seven percent lower than a year ago. Today's new orders figures reflect these continuing difficulties. Of greater concern, however, is the 50 percent drop in the infrastructure sector since the previous quarter and the 39 percent fall compared to Q1 last year. This came despite the government's regular and enthusiastic pronouncements of support over the last two years."

The CPA official added that the government must do better at translating such infrastructure announcements into new orders and real activity on the ground.


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