Press Release

ONS figures confirm association's bleak outlook for construction

12th February 2009

The latest figures for construction output from the Office for National Statistics (ONS) published today highlight the increasingly bleak outlook for construction over the coming year, in line with the recent industry forecasts from the Construction Products Association.

Responding to the figures, Noble Francis, Economics Director at the Construction Products Association, said:

"Today’s figures confirm the deteriorating picture for the private new housing and commercial sectors, which we have been highlighting for a number of months. Unfortunately, public housing figures also fell by almost 60 per cent in 2008.

"The construction industry was hoping that increased spending for public housing would begin to come through to offset the sharp fall in private sector housing, in line with recent government announcements. Sadly, the ONS figures indicate this is unlikely to occur in the near future, even though the industry is crying out for positive government action and could deliver this desperately needed housing in a relatively short time frame."

The main findings from today’s figures are:

Private Housing

• Fallen 57.5 per cent in the quarter to December 2008 compared to the same quarter in 2007, the largest quarterly fall in the history of New Orders figures for Private Housing (since 1983).
• Fallen 43.2 per cent in the 12 months to December compared to the same period a year ago, the largest 12 month fall in the history of New Orders figures for Private Housing (since 1983).

Public Housing

• Fallen 58.7 per cent in December 2008 compared to December 2007, the largest monthly fall since August 1997.
Commercial
• Fallen 41.4 per cent in the quarter to December 2008 compared to the same quarter in 2007, the largest quarterly fall in the history of New Orders figures for Commercial (since 1983).
• Fallen 27.3 per cent in the 12 months to December compared to the same period a year ago, the largest 12 month fall in the history of New Orders figures for Commercial (since 1983).