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Infrastructure output falls

The volume of new infrastructure work fell 2.2% in April, official figures have revealed.

The construction output figures from the Office for National Statistics showed £1.21bn of new infrastructure work was carried out that month.

Although this was down from the previous month, it was a more healthy 9.7% increase on the same period in 2014.

Across the construction industry, output decreased by 0.8% from March 2015 to to £10.45bn.

However, it increased by 1.5% compared with April 2014, making it the 23rd consecutive month of year-on-year growth, albeit the weakest year-on-year growth since November 2013.

Tthe main contributor to the reduction was a fall in repair and maintenance work by 4.6% to £3.85bn. All new work actually increased by 1.6% to £6.60bn.

PwC engineering and construction leader Chris Temple said: “There is a lack of large infrastructure projects at the moment, accounting for the lull in that part of the sector. Furthermore, uncertainty about the economy in Europe has knock-on effects for business confidence and the short-term order books of construction firms.

“Political certainty in the UK after the general election and further details on the government’s plans for most subsectors including infrastructure should give the sector more confidence.”


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