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09/06/2017
UK Construction Fragile As Output Falls In April
New figures have revealed the UK's construction industry is still fragile after a further fall in output in April.
The latest ONS data states output fell by 1.6% month-on-month in April, driven by falls in both repair and maintenance as well as all new work.
However, this contrasts with a 5.7% rise in infrastructure work compared with March, while new orders also increased by 0.7% in the first three months of this year, driven by rises in private housing and private commercial work.
Michael Thirkettle, Chief Executive of industry consultant McBains Cooper, said with Brexit in 2019 on the horizon, the industry "remains concerned about the future".
"This continuing decline in output, coming after last month's fall, is a further sign of the current fragility of the construction industry," he said.
"It also remains to be seen what the new government will propose in terms of skilled EU migrant workers – because of skills shortages in the industry the construction sector is heavily reliant on highly skilled migrant labour and an exodus of such workers would further stifle any growth and housebuilding targets.
"Three general elections in the space of little over seven years have also done nothing for stability in terms of policies affecting the industry. The new government needs to ensure that housebuilding is at the top of its agenda and give the construction industry the tools to succeed, such as streamlining planning laws and investing in public projects."
(LM)
The latest ONS data states output fell by 1.6% month-on-month in April, driven by falls in both repair and maintenance as well as all new work.
However, this contrasts with a 5.7% rise in infrastructure work compared with March, while new orders also increased by 0.7% in the first three months of this year, driven by rises in private housing and private commercial work.
Michael Thirkettle, Chief Executive of industry consultant McBains Cooper, said with Brexit in 2019 on the horizon, the industry "remains concerned about the future".
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"This continuing decline in output, coming after last month's fall, is a further sign of the current fragility of the construction industry," he said.
"It also remains to be seen what the new government will propose in terms of skilled EU migrant workers – because of skills shortages in the industry the construction sector is heavily reliant on highly skilled migrant labour and an exodus of such workers would further stifle any growth and housebuilding targets.
"Three general elections in the space of little over seven years have also done nothing for stability in terms of policies affecting the industry. The new government needs to ensure that housebuilding is at the top of its agenda and give the construction industry the tools to succeed, such as streamlining planning laws and investing in public projects."
(LM)
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