Analysts cautious over industry output figures

Analysts are cautious over new official figures which show construction output jumped by nearly 9% in the second quarter of this year.

The latest statistics from the Office of National Statistics show that industry output rose 9% from the first three months of the year to the second quarter, marking the largest quarterly jump in construction for 50 years.

But chiefs at the Construction Products Association warned that the industry is still in a precarious and is not experiencing a dramatic recovery.

Chief Executive, Michael Ankers said: “Today’s figures show the strongest quarterly increase in output in nearly 50 years, but they flatter to deceive.

“Construction was particularly badly hit by the poor weather in the early part of the year and so the second quarter was always going to see a sharp pick up.

“In addition, a number of public sector projects were started in the run up to the Election and this undoubtedly helped boost output in the spring.

“Looking further ahead we are concerned about the prospects for continued output growth in the rest of the year and beyond.

“The latest Construction Products Association trade survey, released earlier this week, shows that on balance product manufacturers and suppliers anticipate a fall in sales in the rest of the year.

“With cuts in public spending on projects like the Building Schools for the Future already announced and further cuts inevitable after the Comprehensive Spending Review on 20 October, the future remains very uncertain.”