'Grim' outlook for building industry as orders fall

Britain's building industry was facing a bleak future today after construction orders suffered a dramatic 14% fall between April and June.

The slide was led by public and private housing orders - down 23% and 24% respectively - and is the biggest slump outside of a recession over a single quarter since 1987.



The Office for National Statistics (ONS) figures come despite construction output soaring 8.5% during the second quarter - the sector's best performance since 1982.



The sudden fall sparked grim warnings from the industry over the rocky road ahead as Chancellor George Osborne's savage spending review looms next month.



Construction Products Association economics director Noble Francis said: "Today's figures clearly highlight that the increase in construction output during the second quarter does not represent a sustained recovery."



Alasdair Reisner, industry affairs director at the Civil Engineering Contractors Association, added: "This is a reality check for the industry. It's pretty grim out there."



Although the ONS stresses that the figures can be volatile, construction orders have held firm above £13 billion for the previous three quarters before the sudden plunge to £11.6 billion.



A host of building projects have been put on hold or scrapped since the election - including schemes under the Government's Building Schools for the Future project - with more likely to feel the axe next month.



The spending uncertainty has hit companies such as social housing and maintenance firm Connaught.



The ONS figures showed orders falling across all sectors except private sector industrial projects.



Public sector infrastructure orders - such as roadbuilding - were down 22%, the biggest fall since 2004.



The gloom comes after the Chartered Institute of Purchasing and Supply's latest activity survey for August showed construction growth slowing for a third successive month, with housebuilding much weaker than commercial construction and civil engineering.



Independent Comment
blog comments powered by Disqus
Career Services

Day In a Page

Feeding a hungry world – or meddling with laws of nature?

Feeding a hungry world – or meddling with laws of nature?

As scientists at Rothamsted's GM trials plead with activists not to sabotage their work, Michael McCarthy visits the battle field
Monkey meat that could be behind the next HIV

Monkey meat that could be behind the next HIV

Deep in Cameroon's rainforests, poachers are killing primates for food. Evan Williams reports from Yokadouma on a practice that could create a pandemic
Catcalls, whistles, groping: just another day for a young woman

Catcalls, whistles, groping: just another day for a young woman

Government urged to take abuse more seriously as London study shows 41 per cent are harassed
Jailing of Maori separatists stirs colonial-era resentment

Jailing of Maori separatists stirs colonial-era resentment

Militant Tuhoe tribe members defiant amid claims race relations had been set back 100 years
Fatal crashes are cyclists' fault, says Boris

Fatal crashes are cyclists' fault, says Boris

Mayor condemned for saying that two-thirds of riders killed on the road were at fault in accidents
Move over Brangelina, this night belongs to Kingston Bagpuize

Move over Brangelina, this night belongs to Kingston Bagpuize

Unlikely community movie beats the stars to get prized Leicester Square premiere
Solved after 33 years? Case of first missing boy shown on milk carton

Solved after 33 years?

Case of first missing boy shown on milk carton
Like mamma used to make: Pizza Pilgrims is proving a word-of mouth sensation

Pizza Pilgrims: Like mamma used to make

A van dispensing purist pizzas is proving a word-of mouth sensation
The supper on its uppers: Why we need to learn to entertain lavishly for less

Supper on its uppers: Entertain lavishly for less

Dinner parties are buckling under the pressures of food snobbery and belt-tightening...
The 10 best summer cookbooks

The 10 best summer cookbooks

From Claudia Roden's The Food of Spain to The Art of Cooking with Vegetables by Alain Passard...
Gorgeous Georgian: Now we can enjoy the cuisine of Russia's fiery neighbour nearer home

Gorgeous Georgian cuisine

The food of Russia's fiery neighbour is among the world's most inventive and original
Fury at Obama over filmmakers' access to Bin Laden kill team

Fury at Obama over filmmakers' access to Bin Laden kill team

White House denies putting politics before national security
Novak Djokovic: Patriot's game

Novak Djokovic: Patriot's game

The world No 1 is fiercely proud to be from Serbia and to be improving his country's profile. And he knows that winning the French Open – and therefore holding all four Slams – will do his cause no harm at all
Rugby league's great drugs cover-up

Rugby league's great drugs cover-up

After Hull's Martin Gleeson failed a drug test last year it sparked an avalanche of lies, complacency and confusion which Robin Scott-Elliot reveals for the first time
Ian Bell: Forget good-looking shots, I want to be known as a tough operator

Ian Bell: View From the Middle

It was nice to play a pressure innings at Lord's on Monday and be recognised for it