Construction increases in July on new work, repair and maintenance

Results for UK construction output show a 2.2 per cent increase in July, following 0.7 per cent growth in June.

This is up 2.0 per cent from July 2012 .

This rise in new work is in contrast to the estimated 3.6% fall in repair & maintenance during the same period.

The result covers both the public and private sectors. Figures across the year show year-on-year growth for new housing.

In Q2 2013 the volume of new orders is estimated to be 19.8% higher than Q1 2013. The Q2 2013 estimate shows a 32.8% rise compared with Q2 2012. There were large rises in construction orders for new housing where both public and private new housing showed strong growths enabling all new housing to record its largest growth (19.4%) since Q3 2010 and its highest volume since Q4 2007.
Howard Archer, Chief UK and European economist at IHS Global Insight comments:

It is particularly encouraging that the improvement in construction activity is becoming broadly-based across sectors. Housebuilding activity is seeing particular improvement which is welcome news given concerns that a shortage of properties risks contributing to a new housing market bubble. Meanwhile, civil engineering activity is gaining significant momentum amid reports that increased public sector infrastructure spending is starting to impact.

The second quarter saw strong quarter-on-quarter jumps in new orders for most sectors, notably infrastructure (up 75.4%), private housing (up 16.1%), public housing (up 31.3%), private industrial (up 20.9) and private commercial (up 9.5%).