Construction output remained ‘steady’ in month following Brexit

Miller Homes stockThe UK construction industry output held “steady” during the first full month after June’s Brexit vote with new orders and house building also increasing on the previous quarter, new figures have revealed.

After a 1.0 per cent drop in the sixth month of the year, construction output in July was unchanged with “little evidence to suggest that the referendum has had an impact”, according to the latest data released by the Office for National Statistics (ONS)

All new work increased by 0.5 per cent while all repair and maintenance decreased by 1.1 per cent.

Compared with July 2015, construction output decreased by 1.5 per cent. All new work, and repair and maintenance decreased by 0.6 per cent and 3.2 per cent respectively.



The underlying pattern as suggested by the three month on three month movement in output in the construction industry decreased by 1.2 per cent.

New orders were estimated to have increased by 8.6 per cent in quarter two (Apr to June) compared with the first three months of the year and increased by 7.5 per cent when compared with last year’s second quarter. New housing also increased by 25.0 per cent while there was a fall of 17.4 per cent in infrastructure.

There was an upwards revision of 0.6 percentage points to construction output in the second quarter of the year to -0.1 per cent, this has no impact on GDP to one decimal place.

ONS statistician Nick Vaughan said: “Construction output remained steady in July with growth in infrastructure offset by falls in repair work and commercial buildings.



“There was strong growth in construction orders, led by housing, after nearly two years if orders remaining relatively flat.”

Encouraged by the industry growth, Allan Callaghan, managing director of Cruden Building & Renewals, said: “These positive figures illustrate the ongoing strength and resilience of the construction sector in the face of a challenging, post-Brexit environment. While this stablisation in the latest ONS statistical release will be warmly welcomed, all those operating within the construction industry know that they can change on a monthly basis.”


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