Construction output in Spring was at highest level since start of recession

Construction output reached its highest levels since the start of the recession during Labour’s last months in power.

Government spending helped boost output to £8.84bn in May an increase of 43% on January’s figure. Output hit £25.12bn for the three months to the end of May, which was the highest quarterly figure since the Q3 2008.

Construction economist Brian Green warned that the figures could represent a highwater mark for the construction industry. “In the three months to May more public money was spent on construction than in any quarter on record. Well the new lot will put a stop to that.”

He said the surge in output was also due to increased activty in Spring after the harsh winter.

Green was more optimistic about future private sector output. “Private commercial orders and private housing orders are looking strong, which might form the basis of some cushioning from the private sector as the rug is pulled from under those supported by public spending.”

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