Fastest growth in construction output in Q3 since 2003

Construction output rose 1.7% in the third quarter of 2013, the highest rise in Q3 output since 2003, figures from the Office for National Statistics reveal.

Construction output has now been growing for two consecutive quarters after output rose 1.9% in the second quarter of this year, following a prolonged decline in output since the third quarter of 2011.

Total output in the third quarter of 2013 stood at £9.3bn.

New work in the construction industry grew 3.1% between Q2 and Q3, however, the overall results for the Q3 were tempered by a 0.6% fall in repair and maintenance work.

New private commercial work was the strongest performing sub-sector growing 7% between Q2 and Q3, while new private industrial work performed the worst falling 6.4% between Q2 and Q3.

Compared with the third quarter of 2012, construction output grew 4.1%.

In September, output fell 0.9% compared with August but this was still 5.8% up on output in September 2012.

Noble Francis, economics director at the Construction Products Association, said two consecutive quarters of growth pointed to a “sustainable” recovery.

He added: “Private commercial work is a significant contributor to Q3 growth and, given that that is the largest of the sectors, its growth is vital for the sustainable recovery of the construction industry.”

Francis said the spread of growth to commercial work showed the industry was not just reliant on new private housing work to drive growth, as it had been in Q2.