Construction output up in February in spite of the rain

Construction output in February was 2.8% higher than in February 2013 in spite of all the rain, especially in the South of England, which did bring what will probably be a temporary halt to the month-on-month rise in output.

The latest figures from Office for National Statistics show output in February fell by 2.8% compared with January, although the three monthly figure (December to February) rose 4.5% compared with the same three months a year ago and 0.3% compared with the previous three months (September to November).

In February, the UK experienced some of the highest rainfalls on record that led to quite extensive flooding in some areas, especially Hampshire, which led to a month-on-month fall in output in February of 2.6% in new build and 3.1% in repair & restoration.

The 2.6% month-on-month fall in total new work was broad based (with four of the six sub-sectors falling), although the main downward contribution to total new work came from falling private new housing activity, down 6.3%. However, this should be seen against a backdrop of rising property prices, housing transactions, improved secured credit conditions and increased mortgage lending. As a result, private new housing output in February was still 15.3% higher than in February 2013.

The latest data highlight a growing divergence in the performance of construction output in the private and public sectors. Comparing the latest month with the previous year, private sector construction output has risen by 1% while public sector output has fallen by 6%. Over the whole recovery period, this divergence can partly be explained by a stronger recovery in private new housing activity relative to public new housing since 2010.