New UK construction orders hit lowest levels since Q1 2014

11 September 2017

Newly-published ONS figures show that construction output in July fell by 0.9% and was 0.4% lower compared with one year earlier.

In addition, new orders in Q2 declined 7.8% and fell 12.6% on an annual basis.

“Today’s data from the ONS confirms that alongside a 1.3% contraction in output in Q2, new orders in construction hit the lowest level since 2014 Q1,” said Rebecca Larkin, senior economist at the Construction Products Association (CPA).

The sectors suffering the largest falls were the industry’s largest three - private housing, commercial and infrastructure.

Commercial new orders began tailing off in the second half of 2016 and are 11.2% lower since the EU Referendum.

Nevertheless, for the year to date, construction output is still 1.3% higher than a year ago. The weakness in new orders is factored in to the CPA’s forecasts for 2018, with construction growth slowing to 0.7% as activity on projects reaching an end is not replaced at the same rates.