UK Construction Decline Slowing - New Construction Up

Construction output in the UK fell by 0.5% in Q2 compared to Q1, according to new data released today by the Office for National Statistics. This was a much smaller fall than the 8% fall recorded in the previous quarter.

Shockingly all new construction was up 1%, while repair and maintenance was down 2% on a quarterly basis. Before people get too excited that the new work has been boosted by increased house building (like I did); all new housing construction fell slightly on the quarter.

You don't have to listen to the radio for long before you hear an advert for one of the main house builders offering incentives including paying deposits on mortgages, help selling existing houses, and even taking them in part-exchange.

The new figures then would seem to suggest that these builders are simply trying to find buyers for their existing stock. They would also seem to suggest that the UK government -- or local councils anyway -- have employed a similar stimulus to France; whereby state contracted work is increased to stave of rising unemployment and recession.