UK construction output falls 2.7% in Q1

The fall was broad-based but was led by an 8.8% decline in public house building activity and a 5.9% reduction in public non-housing work. Private housing output recorded a fall of 1.6% over the quarter. Compared to a year earlier, total output was 4.9% lower during Q1.

“The 2.7% contraction in output was revised up from the initial estimate of a 3.3% decline, but this still represents the weakest outturn since August 2012 and a £1.04bn loss in output in three months,” said Rebecca Larkin, senior economist at the Construction Products Association.

“Output declined in each month of the quarter, undoubtedly capturing the pauses in work relating to Carillion’s liquidation in January and the snow disruption in February and March.

“Notably, private housing lost its position as the industry’s star performer, with output falling from a record high, but activity is expected to accelerate as we enter the spring selling season.”