Construction output grows for 17th consecutive month



office_for_national_statisticsOutput in the construction industry increased by 0.7 per cent in October 2014 compared to the same period last year, continuing its year-on-year growth for the 17th consecutive month.

Latest construction industry figures from the Office for National Statistics (ONS) showed that new orders in Q3 2014 were estimated to have increased by 5.2 per cent compared with Q2 2014 and by 3.2 per cent compared with Q3 2013.

There were increases in private commercial (22.4 per cent), private new housing (12.9 per cent) and infrastructure (8.1 per cent).

Output in October decreased by 2.2 per cent however when compared with September 2014. Both new work and repair and maintenance decreased, by 1.7 per cent and 3.1 per cent respectively. In the new work category, only public other new work saw an increase; all repair and maintenance work categories experienced a fall in work in October.

The ONS has revised its estimate of gross domestic product (GDP) for Q3 2014 with construction moving from 0.8 per cent to 1.6 per cent.

Managing director of Kier Construction’s Scotland & north-east England business, Brian McQuade, said that the statistics confirm steady growth in the Scottish construction sector.

He said: “Once again the construction output figures clearly evidence the steady growth that we are experiencing, not only within Kier, but right across the Scottish construction industry.

“This has been a good year for Kier. We have exceeded our revenue targets, and have been maintaining a very healthy order book as a result of winning and completing numerous private and public contracts for a range of clients, including schools, care homes, student accommodation, retail outlets, community complexes and community facilities right across the country from Aberdeen to Arran.”

McQuade added: “The steady growth to date, in my view, confirms that the construction industry can look forward to a very healthy, successful and prosperous 2015.”

Equally encouraged by the industry growth, Allan Callaghan, managing director of Cruden Building & Renewals, said the ONS data provides evidence of the continuing growth within the construction industry and this “gives grounds for cautious optimism”.

He added: “The importance of construction, the fabric on which Scotland is built, must not be underestimated. Affordable housing, schools, libraries, office and commercial buildings as well as road networks all provide the framework to build strong and sustainable communities.

“So whilst it’s great to see the growth we are experiencing within the sector reflected in the national statistics – it’s important that we continue to build on that in the weeks, months and years to come.”



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