Key Statistics: 14th August 2012

Glenigan's weekly roundup of keys statistics for the UK construction industry and the wider economy.

Construction

• Construction output fell 3.9% during the second quarter of 2012 to stand 9.5% down on the same quarter in 2011. The decline was led by a slump in new public sector and infrastructure work:
• The new infrastructure sector output fell 9% during the quarter and was 25% lower than a year ago
• Social housing and new public non-residential output were 25% and 21% down on a year ago respectively.
• Smaller year on year declines were recorded in the private sectors with new private housing and industrial 7% lower and private commercial 4% lower than a year ago.
• In contrast private housing RM&I output was the weakest repair & maintenance sector with output 9% down on a year ago, while public housing RM&I was 4% lower and non-housing R&M was 1% up on a year ago.

UK Economy

• Manufacturing output fell by 2.9% during June to stand 4.3% down on June 2011 according to data released by ONS. The moving of the late May 2012 bank holiday to June 2012 and the additional bank holiday for the Queen's Diamond Jubilee are on-off factors that are likely to have contributed to the month on month decline. Manufacturing output during the second quarter of 2012 was 2.3% down on a year earlier.
• Falling input prices have helped curb the rise in ‘factory gate prices’. The output price index for home sales of manufactured products rose 1.7% during the year to July 2012, according to National Statistics. Output inflation has decelerated steadily since September 2011, when prices rose 6.3% on the year. The index of manufacturers’ input prices was 2.4% lower over the period same period.
• Recession in the Eurozone and difficult trading conditions in other important overseas markets have contributed to a deterioration in UK trade. UK trade in goods and services was estimated by ONS to have been in deficit by £11.2 billion (seasonally adjusted) during the second quarter of 2012, compared with a deficit of £7.8 billion in the preceding quarter. Excluding oil and erratic items, the seasonally adjusted volume of exports was 3.3% lower than in the preceding quarter, while the volume of imports fell 0.5%.
• The Council of Mortgage Lenders (CML) reports that 47,500 loans were advanced for house purchases in June; a 1.7% rise on May but 0.8% down on a year earlier.
• The British Retail Consortium reports that like-for-like retail sales (excluding new stores) rose 1.4% in value terms during July, but were only 0.1% up on July 2011. The value of total sales during July was 2.0% up on a year ago.