黑洞社区

Construction output has continued to grow but the industry appears set for challenging months ahead as new orders hit a five-year low.

Output continued to recover following a weak start to the year increasing by 3.3% in the three months to July 2018, according to the latest ONS figures.

But total construction new orders fell 6.5% in quarter two 2018, slipping for the third consecutive quarter, reaching its lowest level since quarter one 2013.

The three-month on three-month growth in July 2018 was driven by growth in both repair and maintenance and all new work, which increased by 5.3% and 2.3% respectively.

Output also grew in the month-on-month series, increasing by 0.5% in July 2018, driven predominantly by a 4.0% increase in new private housing work.

But longer term worries were flagged with the 6.5% decrease in new orders, predominantly driven by a 17.6% fall in new housing orders.

Blane Perrotton, managing director of  property consultancy and surveyors Naismiths, said: 鈥淲hile contractors are clearly busy right now, few have full order books. The 6.5% slump in new orders in the second quarter of the year reveals just how wary developers are to commit to new projects in the current environment. The industry is flying a holding pattern 鈥� waiting for something, anything, to break Britain鈥檚 political and economic limbo.鈥�

Michael Thirkettle, chief executive of consultant McBains, added: 鈥淯nderlying growth remains fragile however, and the real test will be if this can be sustained in the months to come, given the uncertainty over issues like Brexit.鈥�

And the chief executive of Scape told the government it needed to keep confidence going in the run-up to the UK leaving the EU at the of next March.

鈥淕reater clarity is critical to prevent current confidence waning,鈥� said Mark Robinson. 鈥淨uick and bold decisions now on both long and short-term projects would go some way to continuing this momentum through the remainder of the year.鈥�