uk construction industry ons

The level of construction output in September 2020 was 7.3% below that in February 2020, with only infrastructure and private new housing having returned to above their pre-pandemic levels of output; all other types of work in September 2020 have yet to recover, with public new housing the furthest below its February 2020 level at 29.4%. All new work accounts for approximately two-thirds of all work, while repair and maintenance accounts for approximately one-third of all work. UK construction in the global economy . Construction output index in Great Britain 2010-2019. ONS: Construction industry output dropped in May. Construction statistics: sources and outputs Methodology | Released 2 October 2017 A list of the known sources of information available on the construction industry and their outputs. Short-term measures of output by the construction industry and contracts awarded for new construction work in Great Britain. See Improvements to construction statistics: addressing the bias in early estimates of construction output, June 2018 published on 4 June 2018. To deal with non-response we impute for missing data using ratio imputation. Construction output fell by 40.1% in the month-on-month all work series in April 2020; this was driven by a 41.2% decrease in new work and a 38.1% decrease in repair and maintenance; all of these decreases were the largest monthly falls on record since the monthly records began in January 2010. While international best practice is used to impute for non-response, with the lower response rates highlighted in Table 7, it is important to note that the revisions to the months in 2020 may be larger than the revisions profile prior to 2020, as actual data and revised data replace the larger than normal number of imputations for non-response at the time of the first monthly estimate. 18 Dec 20. Overall, the UK’s industrial sector has increased by 1.4% a year since 1948, according to a recent report from the Office for National Statistics (ONS). The outlook to 2020 In both economic and construction terms 2018 has started with a whimper rather than a bang. We have worked closely with respondents and data suppliers and have used additional data sources to inform the estimates in this publication. Monthly construction Output Price Indices (OPIs) from January 2016 to September 2020, UK. Construction output grew by 2.9% in the month-on-month all work series in September 2020, driven by increases in both new work (2.7%) and repair and maintenance (3.4%); this is the fifth consecutive month of growth but the lowest rise in that time. Table 1 shows the change in output for the types of construction work between February 2020 and September 2020, showing that only private new housing and infrastructure have recovered above their February 2020 pre-pandemic levels. This is not the latest release. Construction companies reacted with disbelief when the Office for National Statistics said the industry had contracted 4.7pc in the first quarter of 2011. Comprehensive coverage of the main UK construction news and construction headlines affecting the construction industry. Construction output fell by record 18.2% in the three months to April 2020, compared with the previous three-month period; this was driven by a 19.4% fall in new work and a 15.8% fall in repair and maintenance. Figure 1 shows the monthly and quarterly indexed chained volume measure, seasonally adjusted series. Figure 12 shows the data content based on turnover response rate at the time of the first estimate of each quarter, since the move to monthly gross domestic product estimates in mid-2018. GDP monthly estimate, UK: April 2020 Bulletin | Released 12 June 2020 Gross domestic product (GDP) measures the value of goods and services produced in the UK and estimates the size of and growth in the economy. This partially increased in March 2020, but significantly increased into April 2020 as sites were closed because of the official guidance on restrictions in movement in Great Britain. Monthly data prior to 2010 are derived using statistical methods from the available quarterly construction output data and should therefore be treated with some caution. construction industry trends, UK construction tender pricing and costs, and employment data the UK construction contracting industry remains one of the largest in Europe, measured by employment, number of enterprises, and gross value added. Table 5 shows the response rates to the MBS at time of first publication, for each reference period. The growth of 2.9% in September 2020 was the fifth consecutive month of growth and was driven by growth in all sectors apart from public new housing, infrastructure and public other new work. In no uncertain terms, it called for major industry-wide change. You can change your cookie settings at any time. Data for the Monthly Business Survey for construction and allied trades (MBS) was collected via online questionnaire for the first time for April 2020. Eurostat has also developed short-term business statistics (STS) indicators on the impact of the coronavirus (COVID-19) pandemic in Impact of Covid-19 crisis on construction. ONS data shows increased output and narrowing of trade gap in December as economy defies Brexit ... UK manufacturing and construction ended 2016 on a strong note ... UK industry … The only notable change has been the reclassification of housing associations as private housing, rather than public housing as previously on paper. This growth in repair and maintenance is the second consecutive month of growth in the three-month on three-month series, prior to which there were 13 consecutive months of decline. Recent releases that help describe the ONS response to the coronavirus might be seen in our estimates: Coronavirus and the latest indicators for the UK economy and society: 5 November 2020 (Released 5 November 2020), Coronavirus and housing indicators in England and Wales (Released 2 July 2020), Coronavirus and the effects on UK GDP (Released 6 May 2020), Meeting the challenge of measuring the economy through the coronavirus pandemic (Released 6 May 2020), Real-time turning point indicators: a UK focus (Released 27 April 2020), Communicating gross domestic product (Released 27 April 2020). We have also used qualitative information sourced from construction industry respondents to the Business Impact of Coronavirus Survey (BICS) to quality assure responses we received for September 2020. Table 4 shows the percentage of firms applying to the Coronavirus Job Retention Scheme. Construction is a very diverse industry that includes activities ranging from mining, quarrying and forestry to the construction of infrastructure and buildings, the manufacture and supply of products, as well as maintenance, operation and disposal. Repair and maintenance grew by 43.4% (£4,035 million) in Quarter 3 2020 because of record growth in all repair and maintenance sectors. Despite this, all repair and maintenance sectors in September 2020 remain below their February 2020 level of output, as shown in Figure 8. Comments and suggestions from readers are welcome and should be addressed to: Kate Davies, Construction Statistics and Retail Sales Branch, Office for National Statistics, Cardiff Road, Newport, NP10 8XG. Office of National Statistics (ONS) figures showed that one-third of workers on construction sites in London were from overseas, with 28% coming from the EU. Monthly construction output increased by 2.9% in September 2020 compared with August 2020, rising to £12,938 million, which was the highest level of output since March 2020. These estimates are widely used by private and public sector institutions, particularly by the Bank of England and HM Treasury, to assist in informed decision-making and policymaking. Table 4 shows that despite strong quarter-on-quarter growth, some sectors remain below their Quarter 3 2019 level, particularly within all new housing work. Quarterly response rates at the time of the first quarterly estimate have in been lower in 2020. Damaged business confidence and shrivelling levels of investment will continue to shake the construction industry for many months to come. The volume estimates are calculated by taking the value estimates and adjusting to remove the impact of price changes. The government-commissioned Farmer Review warned in 2016 that the UK construction industry was “facing challenges that have not been seen before”. Source: Office for National Statistics - Construction Output Price Indices. Hide. In this article, written in partnership with David Lawrence, vice president of Fonn UK, he examines how COVID19 is changing the construction industry. Please note that sector estimates may no sum because of rounding. We received a large amount of anecdotal information from survey respondents through qualitative comments to the survey along with information from the Business Impact of Coronavirus Survey (BICS). There are 2.4 million construction industry jobs in the UK in Q2 2019, 6.6% of all jobs. The record new orders quarterly growth (89.2%) was because of 88.7% growth in new housing and 89.4% in all other work; public new housing was the only sector to decline in Quarter 3 2020 compared with Quarter 2 2020, falling by 1.8%. The construction sector is one of the largest in the UK economy – employing 3.1 million people or over 9% of the workforce. Date: 23 Nov 2020. There are 2.4 million construction industry jobs in the UK in Q2 2019, 6.6% of all jobs. Compared with the previous Construction output in Great Britain: March 2020 and new orders January to March 2020 publication released on 13 May 2020, today's publication contains no revisions. Construction output can be broken down by different types of work. This is a simple but effective method, used as a standard internationally. Construction output index: new private housing in Great Britain 2000-2019. Quarterly non-seasonally adjusted type of work and regional data. As shown in Figure 2, the growth in Quarter 3 2020 is by far the largest since quarterly records began in Quarter 1 1997 and substantially larger than the previous record quarterly growth of 4.9% in Quarter 2 2010. Further information on construction statistics development can be found in: Housing in construction output statistics, Great Britain: 2010 to 2019 (30 April 2020), Comparing ONS's economic data with IHS Markit and CIPS Purchasing Managers' Index surveys (published 21 October 2019), Conceptual and methodological differences between private housing construction output and gross fixed capital formation private sector dwellings (published 31 May 2019), Construction statistics development: improving the understanding of new orders in the construction industry and the gap between output and new orders (published 30 October 2018). While monthly data are available in the output in the construction industry back to January 2010, a longer time series back to 1997 can be obtained in the monthly GDP datasets. Tell us whether you accept cookies. Seasonally adjusted estimates are derived by estimating and removing calendar effects (for example, leap years such as this year) and seasonal effects (for example, decreased activity at Christmas because of site shutdowns) from the non-seasonally adjusted estimates. However, when compared with June 2020, where the data collection period was similar to September 2020, response rates at first estimate have improved. Figure 3 shows the month-on-month output growth in April 2020 for the different construction sectors, taken from our seasonally adjusted, chained volume measure series. The first three months following the EU referendum – July to September – saw output fall by 1.1% from the previous quarter. All new work fell by 0.9%, with infrastructure seeing a drop off of 4.1% on September’s figures. These are categorised into all new work, and repair and maintenance, as shown in Figure 3. Further information on the use of VAT turnover in construction output estimates and its impact can be found in the following articles: VAT turnover implementation into national accounts, VAT turnover data in National Accounts: background and methodology, Quality assurance of administrative data (QAAD) report for VAT turnover data. The UK construction industry shows signs of recovery, but pandemic challenges abound, including managing on-site facilities. This led to improved response rates for April 2020 by both number of forms and turnover coverage of the industry when compared with March 2020, though response is still below levels seen prior to COVID-19. Construction output estimates are monthly estimates of the amount of output chargeable to customers for building and civil engineering work done in the relevant period, excluding Value Added Tax (VAT) and payments to subcontractors. Table 6 shows zero returns as a proportion of all returns at the time of the first estimate for a reference month. This means that if output notably reduces in an industry from one month to the next, the imputed values for non-respondents in that industry will also notably reduce when compared with the last known value. New orders grew by a record 89.2% in Quarter 3 2020 compared with Quarter 2 2020, following the record quarterly fall in Quarter 2 2020 of 54.0%; following this record quarterly growth new orders returned to a level comparable with Quarter 3 2019, increasing by 0.6% in the quarter-on-year series. The two sectors where falls in three-month on three-month growth were not percentage fall records were infrastructure and public other new work. Reaction to ONS construction industry output figures for May . Further information on this can be found in Section 8, Measuring the data, under the Impact of online data collection on response rates subheading. Further information on construction statistics development can be found in: Housing in construction output statistics, Great Britain: 2010 to 2019 (30 January 2020), Comparing ONS’s economic data with IHS Markit and CIPS Purchasing Managers’ Index surveys (published 21 October 2019), Conceptual and methodological differences between private housing construction output and gross fixed capital formation private sector dwellings (published 31 May 2019), Construction statistics development: improving the understanding of new orders in the construction industry and the gap between output and new orders (published 30 October 2018). Table 1 shows different measures of growth for all types of work in April 2020. Construction output fell by 18.2% (£7,554 million) in the three months to April 2020, compared with the previous three months. This means we will need to ensure that information is provided faster, using new data sources and changing how our surveys operate, to ensure we provide the information necessary as the situation unfolds. The large monthly decreases in April 2020 are corroborated by evidence from the Business Impact of Coronavirus (COVID-19) Survey (BICS). The monthly profile of construction output growth in 2020 is worth noting as this is the third consecutive month of decline. Construction output decreased by 40.1% in April 2020 compared with March 2020, falling to £7,615 million. It is worth noting small-sized (less than £1 million registered annual turnover) and medium-sized (£1 million to £10 million registered annual turnover) businesses make up the majority of these zero returns. Output in the all work construction output series in September 2020 remains 7.3% (£1,026 million) below the February 2020 level, before the full impact of the coronavirus (COVID-19) pandemic. Output in the construction industry: sub-national and sub-sector Dataset | Released 12 June 2020 Quarterly non-seasonally adjusted sub-national and sub-sector data at current prices, Great Britain. The increase in new work (40.8%) in Quarter 3 2020 was because of record quarterly growth in all new work sectors; the largest contributor was private new housing, which grew by 84.4% in Quarter 3 2020 compared with Quarter 2 2020. In 2016, 87.6% of total construction workers in the UK were men, whilst 12.4% were women, according to the ONS (Figure 4). Repair and maintenance saw a record decrease of 15.8% (£2,172 million) in the three months to April 2020, driven by record falls in all repair and maintenance sectors. The Construction OPI for new construction work grew by 0.2% on the year to September 2020 following three periods of decline from June 2020. 6. Aside from Quarter 2 2020, and Quarter 2 and Quarter 3 2019, new orders were last lower in Quarter 1 (Jan to Mar) 2013 as shown in Figure 9. Construction output can be broken down by different types of work. All sectors excluding private housing' comprises public new housing, infrastructure, public other new work, private industrial new work, private commercial new work, non-housing repair, and public housing repair and maintenance. Publications related to Construction industry Statistical bulletins. The industry can go further to attract and retain new talent. The UK returns to recession, after a sharp fall in construction leads to the economy shrinking by 0.2% in the first three months of 2012. The coronavirus (COVID-19) pandemic presents a significant challenge to the UK, and the Office for National Statistics (ONS) is working to ensure that the UK has the vital information needed to respond to the impact of this pandemic on our economy and society. 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