Construction output
came in flat at zero per cent in the three months to May, seasonally adjusted,
according to data collected by the Office for National Statistics.
This result is due
to a 0.5 per cent fall in repair and maintenance, offset by a 0.3 per cent rise
in new work, the data shows.
The increase in new
work was driven by growth of 2.2 per cent and 8.4 per cent in private
commercial new work and public new housing, respectively.
The fall in repair
and maintenance was accountable to a drop of 2.5 per cent in private and public
housing repair, and a 3.2 per cent decline in maintenance.
Looking at the data
on a monthly basis, construction output rose by 0.6 per cent between April and
May, with new work rising 0.4 per cent, and repair and maintenance by 1.2 per
cent.
Sarah McMonagle,
Director of Communications at the FMB, said: “Alarm bells will be ringing in
the ears of the two candidates vying to be Prime Minister, with these latest
stats showing that the construction sector is at a standstill.
"Whoever wins
the race for PM, I want to see that person take decisive action in their first
days in office by intervening to stimulate our waning sector, which is so vital
to the health of the wider economy. Indeed, without it, our country’s house building
aspirations will be impossible to deliver.
“The poor
performance of the construction sector over the past few months was driven
partly by a drop in activity in the repair and maintenance sector. As you would
expect, this part of the construction industry is particularly vulnerable to
dips in consumer confidence, which the threat of a ‘no deal’ Brexit continues
to perpetuate.
"There would be
no better way to encourage homeowners to commission building projects in the
second half of this year than by slashing VAT on housing repair, maintenance
and improvement from 20 percent to 5 per cent.
"Furthermore,
when we asked our members how the next PM could best prevent an economic
downturn, almost 90 per cent felt this was the most effective way to achieve
it.”
