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North West England sees huge growth in construction output

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The growth of construction output across North West England is ten times the national average according to new figures released by the Office of National Statistics (ONS). 
In the three months to August 2018 the construction sector in NW England recorded a rise in output of 15%.
In the three months to August 2018 the construction sector in the region recorded a rise in output of 15% to more than £4.6bn compared to the same period last year. Across the UK, construction output rose by 1.6% during the same period year on year.

Repair and maintenance work rose by 2.8% compared to the three months prior, while public and private housing output was up 5.6%, with infrastructure increasing by 4.7%.
Commenting on the news, Northern Powerhouse Minister, Jake Berry MP, said:

“It’s wonderful to see how the Northern Powerhouse is driving investment in the North West and helping grow the construction industry to the tune of over £600 million. Anyone visiting the North West can see the huge number of construction projects underway and these figures show just how valuable they are. This construction boom is helping build new homes, new infrastructure and a stronger economy in the region”.

Taking construction output growth across the UK as a whole, it’s clear that growth came from distinct areas. As the Office of National Statistics, put it:

‘Construction output increased by £1,156 million in the three months to August 2018. The most notable contribution to growth came from private housing new work, which increased by £442 million in the three months to August 2018. In addition, other notable three-month on three-month growth came from non-housing repair and maintenance and infrastructure, increasing by £262 million and £232 million’.
Rolling three-month and monthly all work, August 2018
Blane Perrotton, managing director of the national property consultancy and surveyors Naismiths, also highlighted the contribution of certain construction activities to overall output growth, saying:

“Housebuilding doesn’t just have a totemic importance for the industry as a whole- it is also serving as a ‘get out of jail’ card. The £442 million boost it provided in the three months to August underpinned the recovery enjoyed by the industry as a whole”.

“But the growth is far from evenly spread- with big regional disparities opening up as the confidence gap widens between the overheated South East and other areas where demand is stronger and margins better”.

“Infrastructure too is helping keep builders busy, though the £232 million jump in output it provided was mostly focused on existing, long-term projects rather than new ones”.

“Across the industry, numbers of new orders are modest at best- and weak at worst- as developers remain deeply wary of committing to new projects. The Brexit deadlock has choked investor appetite and the chances of the impasse ending before a deal is struck remain close to zero”.

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North West England sees huge growth in construction output - Time to read 3 min
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