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Report finds new construction output has increased

A report analysing new build work has shown new construction output has risen by 0.7 per cent quarter on quarter in the rolling 12 months to Q2 2013.

Total new construction output in current prices was £70,427m in the rolling 12 months to Q2 2013. This is up 0.7 per cent on the rolling 12 months to Q1 2013, but down by 5.8 per cent year on year.

Output in the housing and infrastructure sectors grew quarter on quarter in the rolling 12 months to Q2 2013, but the public non-housing, private commercial and private industrial sectors all recorded declines.

Total construction new orders grew by 7.3 per cent to £52,0 91m in the 12 months to Q2 2013, compared to Q1 2013. The figure was 13.8 per cent up on the 12 months to Q2 2012.

Year on year the only sector where new orders declined was private commercial, the industry’s largest sector. The largest growth was in public housing sector, with orders up 44.5 per cent. Private housing and infrastructure new orders also recorded significant increases

Total new orders are 31.5 per cent lower than Q4 2007’s peak of £76,078m, highlighting how tough the market remains Despite this, there is more optimism in the housing and infrastructure sectors with new orders significantly higher than they were 12 months ago.

However, the continued weakness in new orders in the private commercial sector remains a real concern and total output is unlikely to record substantial growth until this sector starts to recover.

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