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New orders in British construction industry down 3.6% in Q1

Wednesday, 13 June 2012 17:39:05 (GMT+3)   |  
       

In constant 2005 prices, seasonally adjusted, the total volume of all new construction orders in Great Britain in the first quarter of 2012 is estimated to have grown by 4.6 percent compared to the fourth quarter of 2011, but is 3.6 percent lower than the first quarter of 2011, according to a report released by the UK's Office for National Statistics (ONS).
 
Large quarter-on-quarter increases were seen in private industrial new work and private commercial new work, which grew by 57.9 percent and 27.8 percent respectively. However, compared to the previous quarter, infrastructure new work decreased 13.6 percent and private new housing fell by 10.7 percent.

ONS estimates the volume of new orders for infrastructure to be 59.5 percent higher in the first quarter of 2012 than in the same period one year earlier, while the volume of new orders for public new housing and public new work combined was estimated to be 41.3 percent lower in the first quarter of 2012 than in the same period one year earlier.

Commenting on the figures, UK-based Construction Products Association's (CPA) economics director Noble Francis said, "With government cuts impacting sharply upon construction, it is no surprise to see that public sector construction new orders were hit hard in the first quarter. Overall, the new orders figures are undeniably poor and reinforces views from across the industry that contractors in some key sectors will be suffering from sharp falls in work over the next 12-18 months."


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