Sharp fall in orders in the construction industry
(06/03/2009)

According to the British Office for National Statistics, orders in the construction industry in the three months to December 2008 fell by 9 per cent compared with the previous three month period. Orders in the 12 months to December 2008 fell 16 per cent compared with the previous 12 months and orders in three months to December 2008 fell by 26 per cent compared with the same period a year earlier.

In the three months to December 2008 compared with the same period a year earlier, private housing orders fell by 57 per cent and public and housing association housing orders fell by 28 per cent.

Commenting on the ONS data on new construction orders, which saw new orders drop almost 9% in Q4 2008 compared with Q3 and 25% from the same period of 2007, RICS Chief economist Simon Rubinsohn says: "With new orders falling sharply, it is only a matter of time before this is reflected in a steep decline in the level of construction output and more job losses in the sector. This highlights the need for the government to ensure effective delivery of its enhanced capital spending programme."

He added: "Bringing forward capital funding for vital projects will have the advantage of delivering much needed housing and infrastructure but will also go someway to preventing an employment crisis in the industry. As the UK enters a recession it is essential that skills are not lost to the construction sector as people leave and retrain to take up other jobs."

Private and public housing

Private housing orders in the three months to December 2008 fell by 3 per cent compared with the previous three month period, and fell by 57 per cent compared with the same three month period a year earlier. Private housing orders in the year to December 2008 fell by 43 per cent compared with those in the previous 12 months.

Public housing and housing association orders in the three months to December 2008 fell by 24 per cent compared with the previous three month period, and fell 28 per cent when compared with the same three month period a year earlier. Public housing and housing association orders fell by 17 per cent in the 12 months to December 2008 compared with the previous 12 months. All comparisons in this sector are affected by large variations due to its relatively small size.

Private non-housing

Private commercial orders in the three months to December 2008 fell by 22 per compared with the previous three month period, and fell by 41 per cent compared with the same period a year earlier. Orders in the 12 months to December 2008 were 27 per cent lower than in the previous 12 months.

Private industrial orders in the three months to December 2008 fell by 17 per cent compared with the previous three month period, and fell by 36 per cent compared with the same three month period a year earlier. Private industrial orders in the 12 months to December 2008 fell by 27 per cent compared with the previous 12 months.

Private and public infrastructure

Infrastructure orders in the three months to December 2008 rose by 20 per cent compared with the previous three month period, and rose by 20 per cent when compared with the same three month period a year earlier. Orders in the year to December 2008 rose by 22 per cent compared with the previous 12 months.

Public non-housing

Public non-housing orders (excluding infrastructure) in the three months to December 2008 fell by 5 per cent compared with the previous three month period, and rose by 36 per cent compared with the same three month period a year earlier. Orders in the 12 months to December 2008 rose by 31 per cent compared with the previous 12 month period.