The worrying collapse in British conststruction
Today’s construction industry output data provides more evidence that the recovery has been draining away for a while now.
Output in August was down 0.4% from July and 4.1% from August 2010. If you look at the more consistent figures for three month periods, the decline in total output in June – August 2011 from the same period in 2010 is lower, at 1.9%.
But a breakdown into different categories is quite revealing:
What I find particularly worrying is that fall of nearly a quarter in new private industrial construction.
That’s partly because the 2010 figure was highish, as everyone thought we were warming up the recovery and partly because the 2011 figure reflects the fears that we are tumbling into another recession.
That 1.9% fall in total construction output comes after 5 months in which the increase was less than it had been in the previous month:
(I’ve compared the three months ending with the month on the Y-axis with the same period in 2010.)
These figures reinforce the message of the Purchasing Managers’ Index for construction earlier this month, which was
Growth of UK construction activity slows to near-stagnation
Markit reported that new work had collapsed and activity was being kept going mainly by existing orders.
Construction is yet another industry that is bound to contract if demand continues at this low level.
---------------------------
| Tweet |
Richard is an regular contributor. He is the TUC’s Senior Policy Officer covering social security, tax credits and labour market issues.
· Other posts by Richard Exell
Story Filed Under: News
Sorry, the comment form is closed at this time.
Reader comments
What about the worrying collapse in British proofrfreading?
I’ll get me coat.
Not is Scotland it hasn’t.
I wonder why.
Maybe the clue is in the fact that the SNP Gov advanced the programme of infrastructure development. Employment has actually not gone down and this is now the 9th consecutive month of economic growth in Scotland without which the UK’s figure would have been even sicker.
It is not rocket science
Richard,
Your concerns about the lack of private industrial construction is likely misplaced – as a recession tends to create a surplus of industrial accomodation (and as existing projects at the start of the recession will continue to finish if possible) there is a clear lag in this as a measure of the economy.
It is perhaps more relevant (if you go to the source table – for some reason you conflate this figure with public non-housing and infrastructure) that private non-housing repair and maintainance is up – suggesting where businesses are focussing their current attention. Infrastructure (which is not divided into public and private, but will contain both) is up in terms of building and maintainance, suggesting again that investment is there. Private housing (much less of a lag to the economy as an indicator) is also up slightly, although maintainance in this field is down (but this may reflect a lack of extensions etc – these are not new builds).
State spending is obviously down, but otherwise the picture is more interesting, with the headline figure you select not being as worrying as that (and some better figures being obscured by your presentation).
@2 – Yea, gee, it’s almost like that’s a good idea or something. And I mean, it’s not like there’s something like oh…er…. council house construction on brownfield sites which would solve a LOT of issues as well as providing work…
@3 – Don’t worry, we’re only heading straight into a depression. Right.
The worrying collapse in British spelling
Reactions: Twitter, blogs
- Liberal Conspiracy
The worrying collapse in British conststruction http://t.co/jJHKeTZA
- Dorian Lynskey
Not to mention British spelling. RT@libcon: The worrying collapse in British conststruction http://t.co/c0aQcMRJ"
- Alex Braithwaite
The worrying collapse in British conststruction | Liberal Conspiracy http://t.co/gKMJU4ww via @libcon
Sorry, the comment form is closed at this time.
You can read articles through the front page, via Twitter or RSS feed. You can also get them by email and through our Facebook group.
» Criticism of Obama for its own sake: a reply to Mehdi Hasan
» Do older people really need more NHS healthcare?
» There are alternatives to the reckless ‘Plan A’
» On Beecroft: it is already quite easy to sack people
» Why Cameron’s claim of 600,000 jobs created is plainly wrong
» By using age to allocate NHS funding, Lansley rewards Tory voters
» The rise in domestic violence deaths is not an “isolated” problem
» Adrian Beecroft highlights mindset of Tory right
» The US is now a model for the Eurozone to save itself
» The IMF plan to revive the economy doesn’t go far enough
» The Boris brand is weaker than his friends think
|
48 Comments 94 Comments 24 Comments 59 Comments 10 Comments 26 Comments 24 Comments 69 Comments 44 Comments 25 Comments |
LATEST COMMENTS » Chaise Guevara posted on Robin Hood tax: backed by the rich AND the rest, says new poll » Nathan Hulse posted on How Newsnight demonised a single mother » re posted on Robin Hood tax: backed by the rich AND the rest, says new poll » Cylux posted on Red Tory Blond: gay marriage "homophobic" » Trooper Thompson posted on Robin Hood tax: backed by the rich AND the rest, says new poll » Barrie J posted on Robin Hood tax: backed by the rich AND the rest, says new poll » Chaise Guevara posted on Robin Hood tax: backed by the rich AND the rest, says new poll » Chaise Guevara posted on Red Tory Blond: gay marriage "homophobic" » Chris Smith posted on BBC misrepresents gas story to help 'deniers' » Just Visiting posted on Red Tory Blond: gay marriage "homophobic" » Trooper Thompson posted on UKIP higher than Libdems over May » Trooper Thompson posted on Robin Hood tax: backed by the rich AND the rest, says new poll » Cylux posted on Red Tory Blond: gay marriage "homophobic" » Tim Worstallt posted on Robin Hood tax: backed by the rich AND the rest, says new poll » Just Visiting posted on On Beecroft: it is already quite easy to sack people |












