G.B. Construction Output
rose by 4.5% in real terms in 2003, compared
with the 4.2% real growth in 2002. At current
prices, the output growth in 2003 was 10.8%,
compared with 11.9% in 2002. Those values
suggest that price inflation in 2003 was 6.3%.
Construction output in 2003 was again the
highest, in real terms, since the current method
of reporting was started in 1955
New Work Output rose by
2.6% in real terms in 2003, whereas Repair &
Maintenance rose by 6.5%.
the gap between new
orders and output widened in 2003, which is
an indicator that spare capacity in the
industry increased during the year. Output
on new construction grew by 2.6% in real
terms in the year, but new orders fell by
4.0% in real terms.
Private Housing new
output rose by 12% in real terms during the
year, but new orders grew by only 4% in real
terms. New output on Public Other Work grew
by 19.8% in real terms, but new orders fell
by 1%. Infrastructure new output fell by
10.7% in real terms and new orders fell by
17% in real terms. Private Commercial new
output fell by 5.9% in real terms and new
orders fell by 7% in real terms.
One of the strongest
sub-segments of construction was public
sector Schools and Colleges. At current
prices, contractors’ output grew by 17%
and new orders rose by 42%. In contrast,
contractors’ output on Roads
(Infrastructure) fell by 7% and new orders
fell by 29%. In the Private Commercial
segment, contractors’ output on Offices fell
by 15% and new orders fell by 18%.
In the regions, output
growth at current prices was
strongest in Wales (+23%) and the North West
(+22%). New Orders Awarded To Contractors
were strongest in the North West (+29%),
Eastern Counties (+28%), Yorkshire &
Humberside (+26%) and East Midlands (+26%).
In contrast new orders in Greater London
fell by 16%.
Local areas that
achieved high levels of new orders relative
to population in 2003 included Rutland,
Manchester, Cambridge, Lincoln and
Warrington.
2. Construction Output
2.1. Total Output
The provisional
estimate of output of the G.B. construction
industry in 2003 was £92,653 million.
That represented growth of 10.8% at current
prices and 4.5% at constant 2000 prices. In
real price terms, output was again at a
record level.
Private Housing and
Public Other Work segments of new
construction achieved the strongest growth
in 2003, and that there were falls in output
in the new Infrastructure and Private
Commercial segments. Growth in Repair &
Maintenance was marginally stronger overall
than in New Construction.
DTI reports
detailed statistics only for
Contractors' Output, which accounts
for 99.6% of all new output. (The
balance is output by Direct Labour
operations.) The following analysis of
output relates to Contactors' Output
at current prices.
Both Housing
segments maintained the strong growth
that started in 2002. Public Housing
output grew by 18% and Private
Housing rose by 27%.
In the new
Infrastructure segment, there was a
sharp reverse from the overall 13% growth in
output in 2002 to a fall of 10% in 2003.
The fall was especially evident in the Roads
(-7%) and Railways (-26%) sub-segments.
Output in the Water, Sewerage and Harbours
sub-segments all fell, and the only
sub-segments to achieve nominal growth in
output were Electricity and Other.
Overall, output for the public sector fell
by 5% in 2003, and output for the private
sector fell by 13%.
Contractors’ output for
the Public Other Work segment grew by
28% in 2003. Every sub-segment, apart from
the minor Oil, Steel and Coal activity,
achieved positive growth. Universities
(+48%), Offices (+30%) Health (+25%)
achieved notable growth, and Schools &
Colleges consolidated the strong performance
in 2002 with further 17% growth.
There was a marginal
recovery in contractors’ output in the new
Private Industrial segment. All
three sub-segments recovered slightly to
contribute to an overall 6.8% growth in the
segment
Overall, there was a
fall in contractors’ output of 27%. The
small fall in output in Offices in 2002
accelerated to a fall of 15% in 2003, and
Entertainment output also fell. Other
sub-segments remained relatively buoyant,
especially Shops which achieved output
growth of 6%. Output in the private sector
Schools & Universities segment grew by over
30%, following 18% growth in 2002.
3. New Orders Awarded To
Contractors
3.1. Summary
New Orders Awarded
To Contractors for new construction and
capital improvements in 2003 totalled
£33,951 million, which was a nominal
1.6% growth over 2002. That is a
significant slowdown from the 12.7%
growth in 2002. At constant 2000
prices, that represents a fall in real
terms of 4% in the year, which shows new
order trends over the past five years.
Orders are NOT reported for Repair &
Maintenance.
growth in Private
Housing new orders was generally fairly
constant, although orders in the third
quarter eased a little. In real terms,
Private Housing orders rose by only 4%
in 2003, suggesting a significant
increase in prices.
Public Housing
orders recovered significantly during
2003, following stagnation during the
previous four years. At current prices,
growth during the year was 18.7%, which
represented growth in real terms of
12.6%.
3.3. Number and Value of New Orders
64,340 new orders
in excess of £25,000 were reported in
2003, which together represented almost
97% of the total value of orders placed
in the year.
Construction and Building Recruitment UK - Daniel Owen 0118
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