The Live Wire



Press Release

Public sector cuts severely outweigh private sector recovery for construction

9 December 2011

Construction output figures from the Office for National Statistics have been released today for October, showing that construction output has fallen both compared to the previous month and to a year earlier, as the long predicted public sector spending cuts begin to bite.

Commenting on the data, Noble Francis, Economics Director for the Construction Products Association said; 'This morning's release of construction output data highlights that the construction industry is starting to feel the severe effects of sharp cuts in public sector spending. Overall, the construction output fell 2.5% in October compared to the previous month and 2.7% compared to a year earlier. Within this, public housing output fell 6% in October compared to September and 13% compared to October 2010, whilst public non-housing, which covers education and health, fell 9% in October compared to September and 20% compared to the previous year.

'Output in the private construction sectors was mixed but even so was still not sufficient to offset the extent of the public sector falls. Private housing output in October was 1% lower than in September and 6% lower than one year ago and although output in the commercial sector, the largest construction sector, was 1.5% higher in October than a year ago, this was still 2.4% lower than in September, reflecting the increasing economic uncertainty. Furthermore, output in infrastructure was 12% higher than one year ago but 2.4% lower than the previous month.

'Despite the announcements made in the Chancellor's Autumn Statement, 85% of the capital funding 'boost' will only be available from 2013/14 and capital expenditure is still falling 16% overall. As a consequence, public sector cuts and private sector uncertainty are set to ensure that the falls in construction output continue with output in the industry is expected to fall 4% next year.

'Government has correctly recognised that construction recovery will be key to economic recovery but there currently seems little prospect of significant growth in construction output until after 2014. An opportunity to change this lies in the proposed Green Deal initiative, but to deliver this government will need to provide more significant impetus for householders than are currently on offer.'



Press releases, papers and documents published on this page are the intellectual property of an organisation unrelated to Central Lobby. We promote their parliamentary and political campaigning activities as they are subscribers to the Central Lobby service.

As such, Central Lobby does not edit, endorse, or attempt to balance the opinions expressed on this page. The content of press releases and other such types of content are the responsibility of the originating organisation.

Construction Products Association

More from Dods

© Dods Parliamentary Communications Ltd