Construction figures published by the Office for National Statistics (ONS) have again been greeted with scepticism by the industry, after a reported fall in output during March seemed to conflict with trade body studies.
The ONS figures published today show that construction output in March fell by 3.6% month-on-month, and by 4.5% compared with one year earlier.
The data also reports that construction output in Q1 as a whole was 1.1% lower than in Q4 and 1.9% lower than a year ago.
But Noble Francis, economics director at the Construction Products Association, said: “Contrary to today’s report, all other surveys of activity across the entire construction industry supply chain, from the largest contractors to the smallest SMEs, have reported an increase in activity during the first quarter of the year compared to the previous quarter and the previous year, albeit at a slower rate than previously.
“It is disappointing to see that the ONS construction output data do not currently reflect this, but we anticipate that ONS data will be revised upward, as has happened previously. This time last year, the ONS reported that output declined 1.1% in 2015 Q1 on a quarterly basis and declined by 0.3% on an annual basis.
“Following later data revisions, however, the ONS reported that construction output increased 1.9% in 2015 Q1 compared with the previous quarter and rose 6.2% year-on-year.”
Richard Threllfall, head of infrastructure, building & construction at KPMG, added: “Apologies ONS, but I just don’t believe today’s output figures. They don’t ring true with what the industry is experiencing on the ground, with strong demand across all segments and growing order books.
“Yes, the housing sector had a weaker than expected start, but is warming up nicely in the Spring sunshine, and the civils market remains very strong thanks to pipelines of activity in road and rail. Sweepstake, anyone, on how long before we see an upward revision of the numbers?”
The ONS announced last month that it was investigating the accuracy of its own figures, after widespread doubts were raised in the construction industry.
