Construction Output Stabilises After Brexit

Many experts anticipated there would be a drop in construction output after Britain decided to leave the European Union (EU). However, recent figures show this has not been the case, with neither growth nor decline experienced in the industry in July 2016.

According to recent data from the Office for National Statistics (ONS), new work rose by 0.5 per cent between June and July, and repair and maintenance projects fell by 1.1 per cent during the month.

This decline is far below expectations following Brexit, with many people believing new jobs would cease if the UK was no longer part of the EU.

ONS statistician Nick Vaughn comments: “Construction output remained steady in July with growth infrastructure offset by falls in repair work and commercial buildings.”

He even notes a boost for the industry, saying: “There was strong growth in construction orders, led by housing, after nearly two years of orders remaining relatively flat.”

Indeed, ONS figures reveal an increase in new orders by 8.6 per cent between the first and second quarter of the year, as well as a 7.5 per cent rise from Quarter Two last year.

New housing orders even grew by as much as 25 per cent, while there was a decline in infrastructure of 17.4 per cent.

Before the referendum took place on June 23rd, Stephen Stone, chief executive of housebuilders Crest Nicholson told the Guardian that leaving the EU would slow construction down significantly.

He said this would occur as it would be more difficult to import lots of building equipment and materials. There would also be a decline in the number of foreign workers – including those specialising in roof repairs with fabric reinforcement – who make a considerable contribution to the industry.