Expert from Barbour ABI comments on the ONS Construction output
Michael Dall, lead economist at Barbour ABI, comments on the ONS announcement of outputs in the construction industry. Barbour ABI supplies construction data direct to the ONS and UK government.
Michael said: “Today’s reported decline in outputs is disappointing news for the construction industry but the pipeline of work remains strong and therefore this moderate decrease is not necessarily indicative of any fundamental changes within the industry.
“Although down this month residential projects should drive activity throughout the year in line with growth observed in 2014. Infrastructure could also provide further stimulus as there is a high volume of pending projects from last year that are set to commence this year. This is obviously dependent on the outcome of the general election as it remains to be seen what the new administration prioritises once in power.
“While we anticipate that growth will resume later this year, it is important to remember that a number of skills shortages are being reported across the industry which threaten the supply of labour to meet future projects for construction firms. Perhaps this is already being reflected in today’s figures.”
