Construction growth fell to 3.5% in 2004

Construction output rose 1% in the final quarter of 2004, the latest figures from the RICS reveal. This final quarter increase contributed to overall output growth of 3.5% for 2004 – above the average for the past 10 years, but below 2003’s 5.1% increase.

Growth in both public and private housing projects slowed at the end of last year, probably as a result of uncertainty over the direction of the housing market, and repair and maintenance activity fell as a result of a drop off in commercial work. However, a 6.6% increase in new private commercial output in the second half of the year enabled the construction sector to report an overall level of growth.

The RICS’ latest figures for house prices will not provide housebuilders with any consolation as they reveal another slight fall in February, although the pace of decline was the slowest since September.