United Kingdom


  • Industry: Infrastructure, Building and Construction
  • Type: Press release
  • Date: 09/11/2012

Still no daylight for the UK construction industry as output falls, says KPMG 


Richard Lyle, director in KPMG’s infrastructure practice, comments on the latest Office for National Statistics construction data, which shows that UK construction activity fell 13.1% in September from a year ago:


“More grim news for the construction industry as activity falls again in September to 13.1%. 


Disappointingly, the picture for the construction sector in the UK this year has been essentially gloomy. It reflects what we are seeing in the market. The construction supply chain is having a difficult time in a very uncertain and unstable marketplace. Business confidence is fragile and this reflects the state of the broader economy. As a result, the largest slump in output has come from the private commercial sector.


“Unfortunately, this trend is expected to continue into next year and we are likely to see it persisting for the next 6-12 months.  


“However, not all the data is dire – it was good to see new infrastructure output up by 9.9%, showing the largest quarter-on-quarter increase in growth.  This could be a reflection of infrastructure projects benefiting from government incentives.


“Interestingly, growth was also highlighted by Markit/CIPS this month which showed construction output grow marginally from September to October. Hopefully, new orders will start to filter through and the forthcoming Autumn Statement will address some crucial issues around policy and delivery for the wider infrastructure industry through a revised National Infrastructure Plan, and a clear vision and strategy on finance and investment through the long-awaited outcome of the PFI review. It’s vital that we get business confidence back so next year the construction industry can stand on its own two feet and start moving towards growth.”  




For further information please contact:


Arti Mohan, Corporate Communications

Tel: 020 7694 8735

Mobile: 07768 858 085

Email: arti.mohan@kpmg.co.uk

KPMG Press Office: 020 7694 8773


About KPMG


KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff.  The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.


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