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New orders for infrastructure work falls

The volume of infrastructure orders in the second quarter of 2012 fell by a hefty 20.4% with the previous quarter, official figures from the Office of National Statistics have revaled.

The volume of infrastructure orders in the second quarter of 2012 was however up 38.5% compared with the same quarter in 2011. Orders totalling £1.9bn were placed in the last quarter, adjusted to 2005 prices.

The total volume of all new construction orders in the second quarter of 2012 is estimated to have increased fractionally by 0.2% compared with the first quarter of 2012, and is 11.1% higher than the second quarter of 2011.

The Civil Engineering Contractors Association (CECA) responded by warning that the government’s renewed focus on the infrastructure sector as the centrepiece of its growth strategy is yet to feed through as new work for its members.

“While today’s figures show welcome growth in orders for the construction industry as a whole, it is worrying that infrastructure orders have fallen steeply for the second consecutive quarter,” said CECA director of external affairs Alasdair Reisner.

“This reverses much of the gains made during a mini-recovery for the sector last year, and throws into doubt the chances that new infrastructure will be able to support growth in the wider economy.”

CECA has urged government to back infrastructure by providing immediate short-term funding to boost shovel-ready repair and maintenance activity.

Readers' comments (1)

  • Barry Walton

    Whatever Natstats have revaled (revealed) it would be handy if the NCE would do more than regurgitate the (presumably) financial value of tenders etc turned into contracts as volumes of work and provide a more meaningful data set indicating prices, volumes of work in civil engineering terms and programs.

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