Press Release

Repair and Maintenance Keeps Construction Sector Afloat

5 September 2008

The latest ONS figures for construction output in the second quarter of the year show a sharp slow-down in new build activity by the private sector, particularly new house building which is nearly 17% down on the same quarter last year. Balancing this, however, has been a strong performance in the repair and maintenance sector which has grown by more than 2% since the beginning of this year and by more than 6% since the same time in 2007.

Overall construction output has fallen 0.5% since the first since the first quarter of the year, but is still stronger than in the first six months of last year.

Commenting on the figures, Construction Products Association Chief Executive, Michael Ankers said:

‘These figures confirm the serious state of the new housing market and the slowdown that many companies are experiencing in private sector industrial and commercial work. The strength of the repair and maintenance market is surprising, but has been helped by the funding for energy efficiency improvements through the new CERT scheme which became operational at the beginning of April. There are also some indications that with the sharp fall off in house sales people who have decided not to move are spending more on their existing property.

‘These figures also demonstrate the importance to the construction industry of government remaining committed to the capital spending plans set out in last year’s Comprehensive Spending Review. Without the planned increase in spending on infrastructure, schools, hospitals and improvements to social housing, the construction industry would already be in recession, which would have serious consequences for the broader economy.

‘The Prime Minister and the Chancellor need to take full account of this as they put together their autumn economic recovery package.’