Figures show UK April construction output bounces back after weak first quarter

In April 2016, output in the construction industry was estimated to have increased by 2.5% compared with March 2016 according to figures from the ONS. The output bounce back more than it was expected  to be in April following surprisingly upbeat industrial data earlier this week, suggesting the economy might have started the second quarter on more steady ground.

The Office for National Statistics said the rise in construction output, which makes up 6 percent of the economy, was the biggest monthly increase since January 2014 and surpassed economists' expectations for a 1.7 percent increase.

• All new work increased by 2.9% and all repair and maintenance increased by 1.9%.
• Compared with April 2015, output in the construction industry decreased by 3.7%.
• The underlying pattern as suggested by the 3 month on 3 month movement in output in the construction industry decreased by 2.1%.
• New orders for the construction industry in Quarter 1 (Jan to Mar) 2016 were estimated to have decreased by 1.2% compared with Quarter 4 (Oct to Dec) 2015 and decreased by 1.2% compared with Quarter 1 (Jan to Mar) 2015.

The second estimate of UK gross domestic product (GDP) for Quarter 1 (Jan to Mar) 2016 published on 26 May 2016 included an estimate of construction which showed a decrease in output of 1.1% in Quarter 1 (Jan to Mar) 2016. This estimate has been not been revised in this release.

Output is defined as the amount charged by construction companies to customers for the value of work (produced during the reporting period) excluding VAT and payments to sub-contractors.

Construction output estimates are a short-term indicator of construction output by private sector and public corporations within Great Britain. Output estimates are produced and published at current prices (including inflationary price effects) and at chained volume estimates (with inflationary effects removed) both seasonally adjusted and non-seasonally adjusted.

Output in the Construction Industry

More details:

• All work increased by 2.5% compared with March 2016; this was the largest month-on-month increase since January 2014 when it increased by 3.8%
• All work decreased by 3.7% compared with April 2015
• In the 3 months (February 2016, March 2016, April 2016) compared with the previous 3 months (November 2015, December 2015, January 2016) all work decreased by 2.1%
• All new work increased by 2.9% compared with March 2016
• Repair and maintenance increased by 1.9% compared with March 2016