Reaction to ONS construction industry output figures for May

The Vinden Partnership says May’s figures were result of uncertainty surrounding the lead up to the EU referendum in June.

The Office of National Statistics has released its construction industry report for May revealing that the sector saw a drop in output.

Construction output fell by 2.1% in comparison to April, which saw an increase of 2.8%.

The figures were also down 1.9% May 2015.

There were decreases seen in all new work (2.6%) and repair and maintenance (1.4%).

Within all new work, the only area that didn’t experience a decline was infrastructure. The biggest contributor to the fall came in the shape of private new housing.

Total new housing fell by 3.2% in May on the previous month’s figures. Decreases were seen in both public (0.6%) and private new housing (3.5%).

Total housing was responsible for 0.7% of the 2.1% decrease in monthly output.

The year-on-year results show that there was no growth in total housing in comparison to May last year.

Speaking to Matt Brown of UK Construction Online, Peter Vinden, Managing Director of The Vinden Partnership – a leading multi-disciplinary consultant company to the built environment said: “The latest ONS construction output figures are from the run up to the European referendum in June so it is no surprise to see them indicating construction output being affected by uncertainty.

“What’s important now is how we move forward. It’s crucial we don’t talk ourselves into a recession and vital to the future of the construction industry that the government provide stability and strong leadership.

“This means a commitment to push on with infrastructure projects and real movement on its house building programme. Perhaps with the new Prime Minister and cabinet being installed much quicker than expected, we will see the removal of the uncertainty that is suffocating the industry.”