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Statistical bulletin: Output in the Construction Industry, December and Q4 2014

Released: 13 February 2015 Download PDF

Key points

  • This statistical bulletin provides users with the latest estimates of output in the construction industry for December and Q4 2014. Output is defined as the amount charged by construction companies to customers for value of work (produced during the reporting period) excluding VAT and payments to sub-contractors.
  • In Q4 2014, output in the construction industry was estimated to have decreased by 2.1% compared with Q3 2014. Between Q4 2014 and Q4 2013, output was estimated to have increased by 4.8%, this was the sixth consecutive period of annual quarter-on-quarter growth.
  • Downward pressure on the quarter came from repair and maintenance (R&M), which fell by 6.3%, the largest quarter-on-quarter fall since Q4 2009 when it fell by 8.7%. Both housing and non-housing R&M reported falls of 4.9% and 7.7% respectively. New work increased by 0.6% on the quarter.
  • Following falls in October and November 2014, output in the construction industry was estimated to have increased by 0.4% in December 2014 compared with November 2014. On the year, the picture was one of continued growth, with output in the construction industry increasing by 5.5% in December 2014 compared with December 2013. This was the nineteenth consecutive period of year-on-year monthly growth.
  • When comparing the 2014 annual data with 2013, output in the construction industry was estimated to have increased by 7.4%. All work types recorded increases except infrastructure, public other new work and private commercial work. The largest increase was reported by total new housing, increasing by 23.0% in 2014 compared with 2013.
  • The preliminary estimate of gross domestic product (GDP) for Q4 2014 published on 27 January 2015 contained a forecast for construction output of a fall of 1.8%. This estimate has been revised within this release based upon updated survey responses and output is now estimated to have decreased by 2.1%. This downward revision to construction output of 0.3% has no impact to one decimal place on GDP growth.
  • The release for December 2014 has a revision period back to January 2014. Revisions in this release were caused by the incorporation of late data. More information on revisions can be found in the background notes.

Additional information

On 11 December 2014 the UK Statistics Authority announced its decision to suspend the designation of Construction Price and Cost Indices including the designation of Output and New Orders as National Statistics in respect of the Code of Practice for Official Statistics. Taken as a whole, the Code aims to ensure that official statistics meet the needs of users; are produced, managed, and disseminated to a high standard; and that statistics are well explained. The Authority has concluded that, despite the steps taken by the Office for National Statistics (ONS), this overall objective of the Code has not been met. The quality of the data in this release has not been affected.

Construction output estimates are a short-term indicator of construction output by the private sector and public corporations within Great Britain and are produced from a monthly survey of 8,000 businesses in Great Britain. The estimates are produced and published at current prices (including inflationary price effects) and at chained volume estimates (with inflationary effects removed) both seasonally adjusted and non-seasonally adjusted.

Detailed estimates, along with a longer run of time series data, are available to download in the Output in the Construction Industry, December 2014 reference tables. In these tables, users will find chained volume estimates back to Q1 1997 and monthly estimates back to January 2010. Current price non-seasonally adjusted data are available back to Q1 1955. More information on these statistics can be found in the ‘Definitions and explanations’ section in the background notes.

The quality of the estimate of Output in the Construction Industry

Output in the Construction industry estimates are produced from the Monthly Business Survey on the second Friday of the month, two months after the reporting month. Revised results, for previously published periods, are published in line with the National Accounts revisions policy. More information about the data content for this release can be found in the background notes. Revisions are an inevitable consequence of the trade-off between timeliness and accuracy. The response rate in December 2014 was 70.6% of questionnaires, accounting for 80.9% of registered turnover in the construction industry. Therefore the estimate is subject to revisions as more data become available.

The monthly output in the construction industry time series now spans 60 months, however, users should note that this is the minimum time span recommended by Eurostat for seasonal adjustment. While the seasonal pattern is generally established after 60 months in a monthly time series, there is still potential for increased revisions until the seasonal pattern has matured.

All estimates, by definition, are subject to statistical uncertainty and for many well-established statistics, ONS measures and publishes the sampling error associated with the estimate, using this as an indicator of accuracy. For construction output ONS publishes sample and non-sample errors in table 11 of the main reference tables. It should be noted that ONS is continually working on methodological changes to improve the accuracy of the construction output estimates; progress on these can be found on the ONS continuous improvement page on the website.

Economic context

Compared with December 2013, the main categories of construction – new work and repair and maintenance – both grew strongly in December 2014. Despite growth in new work for private housing easing during the second half of 2014, its annual growth rate remained robust at 14.1%. Within the other major category, repair and maintenance, all of the sub-categories grew with the exception of public housing. This may be due to local authorities reducing expenditure on maintaining public housing stocks. The Department for Communities and Local Government's (DCLG's) Quarterly Revenue Outturn Statistics for local authorities in England confirm the gradual fall in expenditure on housing and community amenities.

In 2014, construction output grew by 7.4%, its strongest expansion since 2010 supporting GDP growth of 2.6% in 2014. Growth was broad-based across both new work and repair and maintenance, the former supported by housing output, public and private, grew by 23.0% in total. The other notable contributor to the increase in new work was the private industrial component which grew by 17.4%. All components of repair and maintenance grew in 2014. A range of external indicators note that housing demand and activity, in terms of transactions, have fallen recently which may have impacted on housing output growth. The ONS House Price Index (HPI) showed that UK house price growth has softened to 10.0% in the year to November 2014 down from 10.4% in the year to October 2014. The Bank of England's Credit Conditions Survey for Q4 reported a decline in mortgage demand, despite an increase in mortgage availability. The Bank of England's Agents' Summary of Business Conditions suggests that these indicators may have an impact on house builders, who have increased incentives in order to boost sales.

The Agents’ Summary of Business Conditions for December also reported that a shift towards commercial development has offset an easing of house builders’ output. The Agents’ Summary continued that growth in commercial development had been broad-based across industrial property, warehousing and infrastructure spending. The Bank’s Credit Conditions Survey also highlighted that the commercial real estate sector had significantly pushed up the demand for credit in Q4 2014.

Output in the Construction Industry - December and Q4 2014

Figure 1 shows the two main components of all work. The chart shows that the fall into Q4 2014 of 2.1% in all work has been caused primarily by the decrease in repair and maintenance, which fell by 6.3% compared with Q3 2014. There has been a slight increase in all new work of 0.6% in Q4 2014.

Figure 1: All Work – quarterly time series chained volume measure, seasonally adjusted (2011 = 100)

Figure 1: All Work – quarterly time series chained volume measure, seasonally adjusted (2011 = 100)

Notes:

  1. Source: Construction: Output & Employment - Office for National Statistics

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Figure 2 shows the main components of all new work. Infrastructure showed the largest increase in Q4 2014 of 3.6%, but still remains broadly flat. There has been sustained growth in all new housing since early 2013, however, Q4 2014 saw a fall in this work type. This may be indicative of a slowing of new orders for new housing in 2014. However, the level of total housing at £6.9 billion remained close to its peak of £7.0 billion, reported in Q1 2007. Other new work remained broadly flat, despite a fall into Q4 2014.

Figure 2: Components of all new work – quarterly time series chained volume measure, seasonally adjusted (2011 = 100)

Figure 2: Components of all new work – quarterly time series chained volume measure, seasonally adjusted (2011 = 100)

Notes:

  1. Source: Construction: Output & Employment - Office for National Statistics

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Figure 3 looks at the main components of repair and maintenance. In Q4 2014, all repair and maintenance fell by 6.3% compared with Q3 2014, which is the largest quarter-on-quarter fall since Q4 2009 when it fell by 8.7%. However, it should be noted that there was strong growth throughout the rest of 2014 in repair and maintenance.

Both housing and non-housing repair and maintenance reported falls on the quarter, however, the main contributor was non-housing repair and maintenance, which fell by 7.7%. The level of housing repair and maintenance is at its lowest level since December 2013.

Figure 3: Components of repair and maintenance, quarterly time series, seasonally adjusted (SA) chained volume measures

Figure 3: Components of repair and maintenance, quarterly time series, seasonally adjusted (SA) chained volume measures

Notes:

  1. Source: Construction: Output & Employment - Office for National Statistics

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Table 1: Component comparison to previous levels by quarters

  Current volume Lowest volume* Date Highest volume* Date Percentage change from lowest volume Percentage change from highest volume
New Housing              
Public 1,456 306 1999 Q2 1,459 2014 Q3 375.8 -0.2
Private 5,463 3,045 2009 Q3 6,202 2006 Q4 79.4 -11.9
Total 6,919 3,550 1999 Q4 7,045 2007 Q1 94.9 -1.8
               
Other New Work              
Infrastructure 3,404 2,114 2007 Q1 3,993 2011 Q2 61.0 -14.8
Excluding Infrastructure              
Public 2,325 1,194 1997 Q2 3,703 2010 Q4 94.7 -37.2
Private Industrial  889 750 2013 Q3 1,941 1999 Q2 18.5 -54.2
Private Commercial 5,492 5,094 2012 Q3 8,404 2008 Q1 7.8 -34.7
All New Work 19,030 14,898 1997 Q1 20,550 2008 Q1 27.7 -7.4

Table notes:

  1. Quarterly time series data for these components begins in Q1 1997.

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Summary of growth rates for all work types

Table 2 provides a summary of growth rates across the different types of construction work in December 2014. Some key points from this table are as follows:

  • All work types except private sector new housing, and non-housing repair and maintenance saw an increase in the month-on-month growth rate. The main contribution to the increase was all new work.

  • All new work saw increases in all work types except private sector new housing, the largest contributions coming from public new housing and infrastructure. The fall in repair and maintenance was due to a fall in non-housing R&M.

  • All new work and repair and maintenance contributed to the year-on-year increase in all work, with all work types except public corporations' repair and maintenance showing growth.

Table 2: Construction output summary tables

December 2014, chained volume measures, seasonally adjusted

Percentage change
  Most recent 3 months on a year earlier Most recent 3 months on 3 months earlier Most recent month on the same month a year ago Most recent month on the previous month Most recent level
Construction          
Total All Work 4.8 -2.1 5.5 0.4 10,060
Total All New Work 6.3 0.6 7.0 3.0 6,462
Total Repair & Maintenance 2.3 -6.3 2.8 -3.9 3,598
           
All New Work  
Total All New Work 6.3 0.6 7.0 3.0 6,462
New Housing          
  Public Corporations 16.0 -0.2 17.2 7.0 504
  Private Sector 18.7 -0.2 14.1 -0.1 1,813
Other New Work          
Infrastructure -0.1 3.6 4.6 5.9 1,180
Excl Infrastructure          
Public Corporations 1.7 1.5 1.7 1.0 778
Private Sector           
Private Sector - Industrial 18.4 -7.5 14.2 0.3 297
Private Sector - Commercial -2.0 0.8 1.3 4.5 1,890
           
Repair & Maintenance  
Total Repair & Maintenance 2.3 -6.3 2.8 -3.9 3,598
Housing          
Public Corporations -2.1 -4.5 -2.6 -0.2 571
Private Sector 4.2 -5.1 7.0 2.3 1,264
Non-Housing 2.4 -7.7 1.7 -9.0 1,762

Table notes:

  1. Updated due to rounding error. 13 February 12.30pm

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Analysis of 2014

Output in the construction industry grew by 7.4% in 2014 compared with 2013. The level of all work remained 6.6% below its peak in 2007.

Figure 4 shows that in 2014 both all new work and repair and maintenance reported increases compared with 2013. All new work increased by 7.5%, which is the largest increase since 2010 when it increased by 15.8%, and repair and maintenance increased by 7.2%, which is the largest increase since the chained volume measure series was introduced in 1997.

Figure 4: All Work, all new work and repair and maintenance, annual time series chained volume measures, seasonally (SA) adjusted

Figure 4: All Work, all new work and repair and maintenance, annual time series chained volume measures, seasonally (SA) adjusted

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Table 3 provides a summary of levels and growth rates across the different types of construction work comparing 2014 and 2013.

Table 3: Construction Output : 2014 compared with 2013

Chained volume measures, seasonally adjusted

Percentage change
  2013 level 2014 level Year-on-year growth-rate
Construction      
Total All Work 113,006 121,335 7.4
Total All New Work 69,584 74,769 7.5
Total Repair & Maintenance 43,422 46,566 7.2
       
All New Work  
Total All New Work 69,584 74,769 7.5
New Housing 21,617 26,587 23.0
  Public Corporations 4,441 5,633 26.8
  Private Sector 17,176 20,954 22.0
Other New Work      
Infrastructure 13,343 13,256 -0.7
Excl Infrastructure      
Public Corporations 9,395 9,161 -2.5
Private Sector       
Private Sector - Industrial 3,117 3,659 17.4
Private Sector - Commercial 22,113 22,106 0.0
       
Repair & Maintenance  
Total Repair & Maintenance 43,422 46,566 7.2
Housing      
Public Corporations 7,058 7,121 0.9
Private Sector 14,118 15,747 11.5
Non-Housing 22,246 23,698 6.5

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International Perspective

Output in the construction industry follows the Eurostat Short Term Statistics (STS) regulation for production in construction. Before any comparisons are made with the euro area or EU28, it is worth noting that the UK is the only member state to follow the A method for compiling production in construction statistics.

The latest release of production in construction showed that construction output in the euro area (EA18) decreased by 0.1% and in the EU28 by 0.2% in November 2014 compared with October 2014. The GB estimate for November 2014 showed that construction output decreased by 1.8%. In November 2014 compared with November 2013, production in Construction grew by 2.2% in the EA18 and by 2.5% in the EU28, while the GB estimate showed that construction output grew by 5.8%. It should be noted that an accurate comparison cannot be made, as Eurostat data are calculated on a 2010 = 100 basis, while GB data are calculated on a 2011 = 100 basis.

Outside of the EU, the US Census Bureau release Value of construction put in place showed provisional estimates of construction output increased by 0.4% in December 2014 compared with November 2014 and increased by 2.2% compared with December 2013. The value of construction in 2014 was 5.6% higher than 2013.

Construction estimates in gross domestic product

Construction estimates are a key component of the output approach to measuring GDP along with the estimates of services, production and agriculture. As an aid to users, the short-term economic indicator releases that directly feed into GDP include an additional table of the GDP components. It is anticipated that this table will inform users of the relationship between the individual components which comprise GDP output. The publication dates and the quarterly growths of the individual GDP components are shown below.

Each component of GDP has a weight within GDP based on its value in 2011. Construction has a weight of 64, which means that it is 64 parts of the 1,000 that make up total GDP.

To determine the effect each component has on GDP multiply the component growth by its weight in GDP.

An example using Q2 2014 data:

Construction growth  = 0.7
Weight in GDP  = 0.064 (64/1000)
Effect on GDP  = 0.7 * 0.064 = 0.0448 or 0.0 to 1 decimal place (dp).

Revisions to components and the effect on GDP can be calculated using the same process. As a general rule there are no revisions to GDP when the component revisions are:

IoP = between 0.3 and -0.3
Construction = between 0.7 and -0.7
IoS = 0.0 (all values above or below 0.0 effect GDP due to the high weight of IoS in GDP).

Because;

IoP =    0.146*0.4 = 0.0584 or 0.1 to 1 dp 
Construction =  0.064*0.8 = 0.0512 or 0.1 to 1 dp
IoS =    0.784*0.1 = 0.0784 or 0.1 to 1 dp

Table 4 shows the latest monthly and revised quarterly output figures that fed into the Preliminary estimate release for Q4 2014 published on 27 January 2015.

Table 4: GDP Component tables

Chained volume measure, seasonally adjusted

Percentage Change
Publication Weight in GDP Publication date Latest periods Most recent period on a year earlier Most recent period on the previous period
GDP 1000 27 Jan Q4 2014 2.7 0.5
      Q3 2014 2.6 0.7
Index of Production 146 10 Feb Q4 2014 0.8 0.1
      Q3 2014 1.1 0.1
Construction output 64 13 Feb Q4 2014 4.8 -2.1
      Q3 2014 7.4 2.0
Index of Services 784 27 Jan Q4 2014 3.3 0.8
      Q3 2014 3.2 0.8
Agriculture 6 27 Jan Q4 2014 2.1 1.3
      Q3 2014 1.5 0.5

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The Preliminary estimate of GDP published on 27 January 2015 contained an estimate for quarterly construction of a fall of 1.8%. This estimate has been revised within this release based upon updated survey responses and is now estimated to have decreased by 2.1%.

Background notes

  1. What’s New

    ONS has published a summary of initial results of the short-term output indicators user survey (110 Kb Pdf) to the recent National Accounts Survey and is continuing to gather views from users on how the construction output statistics and other short-term economic indicators data are used. If you have not yet contributed then we would welcome your views by completing the survey. 

    In November 2014 the following Government Statistical Service (GSS) uncertainty guidance was published.

  2. About this release

    Construction output estimates are a short-term indicator of construction output by private sector and public corporations within Great Britain. Output estimates are produced and published at current prices (including inflationary price effects) and at chained volume estimates (with inflationary effects removed) both seasonally adjusted and non-seasonally adjusted. Chained volume measures are also described as volume. Construction output is used in the compilation of the output approach to measuring gross domestic product (GDP).

    The data published in this release cover construction estimates for Great Britain. Construction output estimates for Northern Ireland can be obtained from the Central Survey Unit.

  3. Revision policy

    Construction output conforms to the standard National Accounts revision policy (41.6 Kb Pdf) , which can be found on the ONS website. In line with this, the construction output release for December 2014 has a revision period back to January 2014.

    Figures for the most recent months are provisional and subject to revision in light of (a) late responses to the Monthly Business Survey (MBS) and (b) revisions to seasonal adjustment factors which are re-estimated every period.

  4. Statistical continuous improvement

    In March 2012, as part of its Statistical Continuous Improvement programme, ONS published a Review of Sample Design and Estimation Methodology for Construction Output. This report evaluated the sample design and estimation methods used on the Construction Output Survey. The conclusions of the review were that the current sample is performing well and that the current methodology for estimation within the survey produces the smallest standard error.

    In response to user feedback and in line with the announcement made in the article ‘Improvements to the methods used to compile Output in the Construction Industry statistics’, this statistical bulletin now contains monthly seasonally adjusted chained volume estimates. Due to the potential for confusion when comparing constant price (volume) and chained volume measures, all references to constant price series for construction output have been removed from this, and future bulletins.

    A work plan for construction output statistics will be published shortly and will align with the National Accounts and related statistics work plan.

  5. Use of the data

    Output in the Construction Industry estimates are widely used both internally and externally and have been identified by legal requirement and user engagement surveys.

    The key users of data from the Output of the Construction Industry dataset are:

    • United Kingdom National Accounts.

    • Eurostat, the statistical office of the European Union, in order to comply with statutory legislation on short-term business statistics (STS). Short-term business statistics provide information on the economic development of four major domains: industry, construction, retail trade and other services.

    • Industry analysts requiring estimates of the construction industry output of Great Britain.

    • Trade associations making UK and international comparisons and to forecast trends in the construction industry.

    • Other government departments including: the Department for Business, Innovation and Skills (BIS), HM Treasury (HMT), Department for Communities and Local Government (DCLG) and the Office for Budgetary Responsibility (OBR).

    As well as being a key indicator of the performance of construction companies, the results of the survey also contribute to the estimate of the gross domestic product of the UK, contributing approximately 6.4% of GDP.

    More information on the uses made of short-term economic statistics is available.

  6. Methods

    The ONS Monthly Construction Output Survey measures output from the construction industry in Great Britain. It samples 8,000 businesses, with all businesses employing over 100 people or with an annual turnover of more than £60m receiving a questionnaire by post every month. The results of the survey are deflated using price indices from the Building Cost Information Service (BCIS) of the Royal Institute of Chartered Surveyors (RICS) and then seasonally adjusted using X-13-ARIMA-SEATS to derive the published estimates.

  7. Quality

    The latest Quality and Methodology report for the Output of the Construction Industry estimates can be found on the ONS website.

  8. Revisions

    One indication of the reliability of the key indicators can be obtained by monitoring the size of revisions. Analysis of the previously published quarterly seasonally adjusted constant price series has shown that revisions to construction data are small. Generally these quarterly revisions are less than 1 percentage point when compared with the final revised period five quarters after initial publication. This indicates that the published estimates are a reliable snapshot of the output in the industry at the date of publication.

    The size and pattern of revisions for output data which have occurred in the open period can be found in the new revision triangles on the construction web page. Please note that these indicators only report summary measures for revisions. The revised data may be subject to sampling or other sources of error. Details about this revisions material can be found in the document ‘Revisions information in ONS First Release’.

    It should be noted that, due to seasonal adjustment taking place on a short span of data points used to interpret the seasonal effects, there is potential for increased revisions until the seasonal pattern is established within the time series. The seasonal pattern is generally established after 60 months in a monthly time series.

    Please note that a monthly seasonally adjusted chained volume series is not available pre-2010. This is due to monthly data not being available for this period. These data are a requirement for creating previous year’s prices from which chain linked volume measures are created.

  9. Relevant links

    Modelling Construction Statistics Deflators

    Modelling Construction Statistics Deflators

    Impact of quarterly employment question on monthly survey response

    Impact of quarterly employment question on monthly survey response.

    Investigating the effect of quarterly collection of employee jobs data on the estimated standard error of change for total turnover on the Monthly Business Survey

    This article can be found on the ONS website.

    Annual Construction publication

    Construction Statistics, No. 15, 2014 Edition

    International Comparisons

    International construction comparisons are compiled by Eurostat. The estimates produced in this bulletin are included in these comparisons. Further information can be found on the Eurostat web page.

    Analysis of the construction industry

    An article on the UK construction industry was published by BIS in 2013.

    UK Statistics Authority assessment

    Assessment of the Construction Output and New Orders statistical bulletin

    Disclosure control policy

    The Disclosure control policy for tables produced from surveys.

    The circular flow of income

    14 ways ONS statistics help you understand the economy - A closer look at the circular flow of income

  10. Further information

    Releases on construction output and employment prior to the transfer to ONS can be found on the BIS website.

  11. User Engagement

    The user engagement section of the ONS website contains results of the survey held in April 2011 regarding users' satisfaction and use of the new orders and construction output surveys.

  12. GENERAL INFORMATION

    Understanding the data

    Interpreting the data

    When making comparisons it is recommended that users focus on chained volume measures or constant price (volume), seasonally adjusted estimates as these show underlying movements rather than seasonal movements.

    Construction output estimates are subject to revision because of:

    • Late responses to the Construction Output Survey.

    • Revisions to seasonally adjusted factors which are re-estimated every quarter.

    • Annual updating of the Inter-Departmental Business Register (IDBR) that forms the basis of the sampling for the Construction Output Survey. This occurs in April and can have an effect on the results published in May.

    Definitions and explanations

    Definitions of terminology found within the main statistical bulletin are detailed:

    Output
    Output is defined as the amount chargeable to customers for building and civil engineering work done in the relevant period excluding VAT. As well as work charged to customers, businesses are asked to include the value of work done on their own initiative on buildings such as dwellings or offices for eventual sale or lease, and of work done by their own operatives on the construction and maintenance of their own premises. The value of goods made by businesses themselves and used in the work is also included.

    In all returns, work done by sub-contractors is excluded to avoid double counting, since sub-contractors are also sampled. Output does not include payments made to architects or consultants from other firms – this would also cover engineers and surveyors. It would include wages paid to such people if they were directly employed by the business.

    Current price (value) (CP)
    Current prices are the actual or estimated recorded monetary value over a defined period. They show the value for each item expressed in terms of the prices of that period.

    Constant price (volume) (KP)
    A constant price or volume measure is a series of economic data from successive years expressed in real terms by computing the production volume for each year in the prices of a reference year. The resultant time-series of production figures has the effects of price changes removed (that is, monetary inflation or deflation). In other words, from the raw data a series is obtained which reflects only production volume. See the ‘Deflation’ section. Constant price series in this bulletin are based on the reference year 2005.

    Chained volume measures (CVM)
    A chained volume series is a series of data from successive years, put in constant price terms by computing the production volume for each year in the prices of the preceding year, and then chain-linking the data together to obtain a time-series of production figures from which the effects of price changes (i.e., monetary inflation or deflation) have been removed. Further information on chain-linking can be found in the methodological article ‘Annual chain-linking’ (58 Kb Pdf) .

    Seasonal adjustment (SA)
    Seasonal adjustment aids interpretation by removing effects associated with the time of the year or the arrangement of the calendar, which could obscure movements of interest.

    Deflation
    It is common for the value of a group of financial transactions to be measured in several time periods. The values measured will include both the change in the volume sold and the effect of the change of prices over that year. Deflation is the process whereby the effect of price change is removed from a set of values. The current reference year is 2011 for CVM data.

    Sectors
    Institutional sectors are defined in the System of National Accounts (SNA) glossary as;
    Units that are grouped together to form institutional sectors on the basis of their principal functions, behaviour, and objectives.

    The resident institutional units that make up the total economy are grouped into five mutually exclusive sectors:

    • Non-financial corporations.

    • Financial corporations.

    • General government.

    • Non-profit institutions serving households.

    • Households.

    In the case of non-financial and financial sectors these can be further broken down into public sector, those units either controlled by the state or funded from the public purse and include general government, local authorities, housing associations and nationalised industries and private sector, those units controlled by private individuals or groups and not by the public sector.

    Gross domestic product (GDP)
    Gross domestic product (GDP) is an integral part of the UK national accounts and provides a measure of the total economic activity in a region.

    GDP is often referred to as one of the main 'summary indicators' of economic activity and references to 'growth in the economy' are quoting the growth in GDP during the latest quarter.

    Construction estimates are a component of GDP from the output or production approach (GDP(O)) which measures the sum of the value added created through the production of goods and services within the economy (our production or output as an economy). This approach provides the first estimate of GDP and can be used to show how much different industries (for example, agriculture) contribute within the economy.

    Housing
    Housing is generally defined as ‘all buildings that are constructed for residential use’. Within the public sector, this classification includes construction items such as local authority housing schemes, hostels (except youth hostels), married quarters for the services and police, old peoples' homes, orphanages and children’s remand homes and the provision within housing sites of roads and services for gases, water, electricity, sewage and drainage.

    Private sector housing includes all privately owned buildings for residential use, such as houses, flats and maisonettes, bungalows, cottages, vicarages, and the provision of services to new developments.

    Infrastructure
    Infrastructure is the generic term for the basic physical and organisational structures and facilities needed for the operation of a society or enterprise. These construction items include buildings, roads, power supplies, etc.

    Other new work
    Other new work excludes the housing and infrastructure sectors. This classification includes construction items such as factories, warehouses, schools and offices, etc.

    Non-housing
    Within the public sector, non-housing is classified as the construction of building such as schools and colleges, hospitals, universities, fire stations, prisons and museums. Private sector non-housing is comprised of the private /industrial and private/commercial classifications. Private-industrial is the economic activity concerned with the processing of raw materials and manufacture of goods in factories and includes construction items such as factories and shipyards while private-commercial includes all items not included in the previous categories such as embassies, theatres, retail units, warehouses and garages, etc.

    Repair and maintenance
    The repair and maintenance heading in the construction estimates comprises of housing, infrastructure and other new work. This concerns work which is either repairing something that is broken, or maintaining it to an existing standard. For housing output this includes repairs, maintenance, improvements, house/flat conversions, extensions, alterations and redecoration, etc. on existing housing. For non-housing this includes repairs, maintenance, redecoration, etc. on existing buildings/structures, which are not housing, for example, schools, offices, roads, shops.

    Table 2 of this bulletin aggregates infrastructure and other new work into non-housing.

  13. Code of Practice for Official Statistics

    National Statistics are produced to high professional standards which are set out in the Code of Practice for Official Statistics. They undergo regular quality assurance reviews to ensure that they meet customer needs and are produced free from any political interference.

  14. Publication policy

    Details of the policy governing the release of new data are available from the Media Relations Office.

  15. Accessing data

    The Output in the Construction Industry statistical bulletin and relevant time series datasets are available to download free from the Office for National Statistics website at 9.30 am on the day of publication.

    ONS allows a list of agreed officials to have access to data 24 hours before publication, which is available on the Output in the Construction Industry: Pre-Release page.

  16. Further information and user feedback

    As a user of our statistics, we would welcome feedback on this release, in particular on the content, format and structure. For further information about this release, or to send feedback on our publications, please contact us using the following information.

    Contacts:

    Media contact:
    Tel Media Relations Office +44 (0)845 6041858
    Emergency on-call +44 (0)7867 906553
    Email press.office@ons.gsi.gov.uk

    Statistical contact:
    Name Kate Davies
    Tel +44 (0)1633 455617
    Email construction.statistics@ons.gsi.gov.uk

    Contact us:
    Tel +44 (0)845 601 3034
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  17. Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk

Statistical contacts

Name Phone Department Email
Kate Davies +44 (0)1633 456344 Office for National Statistics construction.statistics@ons.gsi.gov.uk
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