Construction and
manufacturing across the UK have continued to fall, according to analysis from
the Office for National Statistics (ONS).
The February ONS
figures show that construction fell 1.6 per cent month-on-month, and was down
three per cent compared to February last year.
“Construction fell
in the three months to February after an erratic couple of months, mainly due
to a big decline in repair work,” said Darren Morgan, head of national accounts
at the ONS. “However, this was partially offset by growth in both infrastructure
and housebuilding”.
Mark Robinson, Scape Group Chief Executive, said:
“Today’s data shows the construction sector is continuing to face difficulties.
Anecdotal evidence is pointing towards a dip in productivity and output as a
result of the adverse weather conditions experienced in the early months of the
year, with a number of construction sites and manufacturers unable to operate
during this period.
“The contraction in
both total new work and repair and maintenance is troubling. The upgrades
required to our vital infrastructure and services should also not be
underestimated. Inadequate roads, rail, energy, schools, hospitals and housing
significantly hampers the country’s productivity. With only 12 months remaining
in our Brexit negotiations, it is vital that the UK’s assets and infrastructure
are fit for purpose, attract inward investment and create a strong independent
economy.
“New work also fell
in February to £8,211 million, largely due to a decrease in private commercial
new work and public new work. It is important that this decline is reversed,
especially for the public sector where demand for services is only going to increase.
One key example is the requirement for secondary school places which will reach
435,646 by 2020/21. The government needs to work collaboratively with the
public and private sectors to support funding for both new projects and
upgrades.”
Rebecca Larkin, Senior Economist at the Construction Products
Association, commented: “This release will capture some of the impact of
the snow disruption during the first quarter of the year, equivalent to
one working day at the end of February. Output for the month was £206
million lower than in January and whilst it cannot all be attributed to
weather disruption, a pause in activity on sites across the country
would have been unavoidable.
“Infrastructure had a weak start to 2018, with rail and road work
affected by freezing conditions, but days were also lost as contracts
were handed over on former Carillion projects. Private housing remained
the star performer of the industry, rising 1.5% month-on-month and 7.6%
from a year earlier even before the traditional Spring increase in house
building activity.”
Meanwhile
manufacturing fell 0.2 per cent in February, with the biggest decline seen in
the manufacture of machinery.
“Manufacturing
continued to grow in the three months to February but at the slowest rate seen
since the summer, with increases in machinery, metal products and
pharmaceuticals offset by falls in electrical appliances and oil refining,”
said Morgan. “This drop in refining may have contributed to the fall in fuel
exports and the large rise in fuel imports also seen in the three months to
February.”
Total production
fell 0.1 per cent in the three months to February following an 8.6 per cent
fall in decrease in mining and quarrying. The fall in mining and quarrying was
due to the unexpected shutdown of the Forties Pipeline System.
Production output
grew by 0.1 per cent in February, with growth in energy supply, and water and
waste management partly offset by the falls in mining and quarrying.
The country's trade
deficit also widened slightly in the three months to February, according to the
ONS survey, with reduced imports of machinery offsetting the rise in fuel
imports.
