Overall construction output expected to remain negative, says Pinsent Masons

04 Feb 2013 | 11:56 am | 1 min. read

Graham Robinson, Global Business Consultant at Pinsent Masons, comments on the Markit/CIPS latest PMI which signals moderate fall in output levels at the start of 2013:

"Expectations are that 2013 will remain negative for construction output as a whole, but there should be a turning point during 2013, as we start to see a recovery from a deep recession for UK construction.

"We should remember that any recovery will be from a significantly lower base, as UK construction output has slumped by over 20% in real terms since the start of the financial crisis.

"Housing is a significant part of the construction sector with all new housing work accounting for 25.9% of new construction in 2011.

"Without growth in housing, the outlook for UK construction sector is likely to remain negative this year.

"The private commercial sector is construction's largest sector, and in the three months to November 2012, it has fallen sharply by 16.2%, compared to the same period in 2011, leaving construction as a whole 9.8% lower than the year previous.

"It would be surprising if we saw a turnaround in the private commercial sector for construction at present, as the outlook for business investment still remains weak.

"It is of no surprise that Markit/CIPS is registering lower levels of activity in infrastructure as the new PF2 arrangements introduced by government late last year have yet to take any effect, and the outlook for investment in new infrastructure by institutional investors also remains weak.

"UK construction has lost around 400,000 jobs since the start of the financial crisis, so there is significant spare capacity within the sector."

Latest press releases

Show me all press releases

Pinsent Masons advises Condeco Group on major acquisition to transform workplace management

Multinational law firm Pinsent Masons has advised Condeco Group on its acquisition of ProxyClick SA, the leading global provider of enterprise visitor management software.

Pinsent Masons advises Suffolk Council on its public-private partnership to deliver £700m social development and housing projects

Multinational law firm Pinsent Masons has advised Suffolk Council on its proposed public-private alliance with Lovell Partnership to deliver nearly 3,000 much-needed homes across the region.

Pinsent Masons advises on €1 billion variable annuity policies transfer

Multinational law firm Pinsent Masons Irish corporate insurance team has advised Athora Ireland plc (Athora) on its transfer of a book of variable annuity policies to Monument Life Insurance DAC, with assets under management valued at nearly €1 billion for circa 13,000 customers.

People who viewed this press release also viewed

Show me all press releases

Pinsent Masons advises Condeco Group on major acquisition to transform workplace management

Multinational law firm Pinsent Masons has advised Condeco Group on its acquisition of ProxyClick SA, the leading global provider of enterprise visitor management software.

Pinsent Masons hires corporate crime and forensic investigations partner in South Africa

Multinational law firm Pinsent Masons has hired partner Edward James to bolster its corporate crime and investigations capabilities in South Africa.

Pinsent Masons advises University of Birmingham on major student accommodation project

Multinational law firm Pinsent Masons has advised the University of Birmingham on a 1,200-bed student accommodation project which will provide nearly 500 new student bedrooms and upgrade over 700 existing student bedrooms at Pritchatts Park Student Village.

For all media enquiries, including arranging an interview with one of our spokespeople, please contact the press office on

+44 (0)20 7418 8199 or 

Location contacts