December 2020 GDP figures show construction vulnerable
Contents |
[edit] Introduction
The Chartered Institute of Building (CIOB) has responded to GDP figures published on 12 February 2021 by the ONS (Office for National Statistics). The figures include data for December 2020, detailing a picture of the full year’s growth.
[edit] December 2020 downturn
The figures show that construction output fell by 2.9% in December 2020, following seven months of consecutive growth. Despite the industry remaining broadly open, all types of work in the sector saw a decline as businesses continued to adhere to social distancing measures due to the COVID-19 pandemic along with site shutdowns as part of the Christmas period.
The decline was driven by falls in both private new housing and private commercial (3% and 6%respectively). This was due to falls in both new work (3.8%) and repair and maintenance (1.5%) which had been growing steadily since the first initial lockdown in March 2020.
[edit] Growth in October and November 2020
Due to steady growth between October and November 2020, quarterly construction output grew by 4.6% compared to the previous quarter. This was driven by growth in new work and repair and maintenance (4% and 5.5% respectively).
The increase in new work in Quarter 4 2020 is attributed to quarterly growth in all new work sectors (other than private commercial, which decreased by 1.6%). The increase in repair and maintenance was largely due to non-housing repair and maintenance - the sudden drop of which in December 2020 caused the monthly output to shrink for the first time since May 2020.
[edit] Changes ahead
Throughout 2020, the construction industry remained resilient and worked tirelessly to help tackle the impacts of the COVID-19 pandemic, including the building of new hospitals and facilities, and keeping people in employment. It is thought that 2021 will bring its own challenges for construction businesses, including the introduction of the VAT Reverse Charge, changes to IR35 and fundamental reform to the building safety regime.
As the world’s largest and most influential professional body for construction management, CIOB will continue to work with industry and partner bodies to understand how these issues will affect the industry and represent these views to Government to ensure construction is at the heart of the economic recovery.
Eddie Tuttle, Director of Policy, External Affairs and Research at the CIOB, said: “The fall in construction output in December, highlighted in the latest ONS figures, shows that the construction industry is still vulnerable to the economic impacts of the COVID-19 pandemic. While the industry has rebounded since the first national lockdown last year, growth is beginning to slow. The Government has been clear that the construction industry has a key role to play in supporting the UK economy to weather the storm, however we are worried that forthcoming measures will impede the industry’s ability to help ‘build back better’. CIOB is encouraging the Government to consider extending the Stamp Duty Land Tax holiday and to immediately withdraw the VAT reverse charge to support fragile businesses through this incredibly challenging time.”
This article originally appeared on the CIOB website under the headline, 'GDP figures show construction remains vulnerable'. It was published on 12 February 2021.
--CIOB
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).
Ebenezer Howard: inventor of the garden city. Book review.
The Grenfell Tower fire, eight years on
A time to pause and reflect as Dubai tower block fire reported just before anniversary.
Airtightness Topic Guide BSRIA TG 27/2025
Explaining the basics of airtightness, what it is, why it's important, when it's required and how it's carried out.
Construction contract awards hit lowest point of 2025
Plummeting for second consecutive month, intensifying concerns for housing and infrastructure goals.
Understanding Mental Health in the Built Environment 2025
Examining the state of mental health in construction, shedding light on levels of stress, anxiety and depression.