Overall, construction grew year-on-year by 4.5% in Q4 2013, primarily driven by private and public housebuilding.
The data prompt a mixed reaction from within the industry.
Construction Products Association economics director Noble Francis said: “The 0.3% decrease in the preliminary estimate for construction in 2013 Q4 was disappointing but followed an increase of 2.6% in the previous quarter. Furthermore, between 2012 Q4 and 2013 Q4, construction output increased by 4.5%.
“This GDP estimate shows that the construction industry’s recovery is still in early days. Of the four main sectors, construction output was the only one to register a negative result. However, this was a marginal fall in the preliminary figures within a general upward trend, and our latest Forecasts anticipate a 3.4% rise in construction output for 2014.”
National Federation of Builders chief executive Julia Evans said: “Investment in construction, in housebuilding, infrastructure and renovation benefits the economy as a whole through employment and a healthy return on taxpayers’ money. We now need to ensure that in order to keep these companies contributing to further growth that we do more to pay them on time. Ongoing construction investment will continue to bear fruit and drive recovery in 2014.”
She continued: “As the economy recovers, it is important for companies to be at least as vigilant about issues such as cash flow and payment as they were during the downturn. There have been shortages of materials and increases in labour costs as the speed of the increased demand took the industry by surprise, but future work prospects point to continued growth for the industry.”
However, Steve Murphy, general secretary of the construction trades union Ucatt, said: “The fall in construction output is a direct result of government policies. Their huge cuts in infrastructure spending have totally undermined investment and confidence in the construction industry, especially outside London, where levels of work are not increasing.”
Mr Murphy added: “The construction industry needs an urgent plan B, it is an industry which is labour intensive, and investment directly results in increased employment. If the Government invested in infrastructure and social housing projects, skilled workers would find employment and the overall strength of the economy would be dramatically improved.”
Got a story? Email news@theconstructionindex.co.uk
