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Construction output in August slipped back 1.5% against August to stand just 0.2% up on a year ago. Output during the three months June to August was 1.3% down on the preceding three months and 0.5% lower than a year ago. 

Private new housing output slipped 2.0% during the three months to August against the preceding three months but was still 6.7% up on a year ago, partially offsetting a weaker performance elsewhere.  In contrast new social housing output remained weak, being 1.2% down on the previous three months and 7.7% lower than a year ago. Public housing RM&I output was also lower, being 11.0% down on a year ago. 

Industrial sector output was sharply lower than a year ago, declining by 12.0% against June to August 2015. 

Infrastructure output also slipped back during the three months to August, being 1.1% down on the previous three months and 8.4% down on a year ago. 

In contrast commercial sector output has steadied, being just 0.4% down on the preceding three month and 1.8% ahead of a year ago. Similarly public non-residential new work also grew by 0.7% during the three months to August and was 0.3% up on a year ago. 

We anticipate a further weakening in output near term as private investors and developers review projects following the referendum decision. This is likely to temper the growth in private housing and commercial sector activity which has been supporting overall industry workload. However, the industry may subsequently benefit from increased funding in the Autumn Statement for infrastructure and public sector projects. 


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