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Construction new orders continue to fall
The latest numbers from the ONS show continued annual declines in new orders obtained by the construction industry, although the trend so far this year shows some signs of improvement
At £2.8bn new orders in May were slightly lower than in April, but better than any other month in the previous six. However, the decline on previous years remain steep, with orders in the three months to May down 30% on previous years, and down 37% on the same three months in 2007.
Unsurprisingly, given the recession, the decline is largely in private sector orders, with steep declines in both housing and other (i.e. commercial) orders. Government spending rose in all categories, perhaps linked at the economic stimulus being delivered.
It is no surprise that the recession has bit construction hard, but today’s numbers cast some doubt on the green shoots that some thought were indicated by the month on month rise in April — especially given that similar rises occured in the first few months of last year.
The weak new orders make continued revenue declines in the construction industry probable. If there is any recovery, it is, so far, uncertain rather than robust.
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