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The value of new construction orders was down 10.0% on the previous quarter (Q4 2012) and down 0.2% compared with the same period a year before (Q1 2012).

The total value of new orders in Q1 2013 reached 拢10,793m. Of this, 拢3,319m was in new housing and 拢7,474m was in other new work.

The fall between Q4 2012 and Q1 2013 was attributable to a large decline in infrastructure which fell 49.8% (拢1,600m) compared to Q4 2012. The components excluding infrastructure all showed positive quarter-on-quarter growth.

New housing showed a small increase in Q1 2013 of 0.2%. However, this minor increase ensures that new housing is at its highest level since Q1 of 2008. Comparing the year-on-year estimates, new housing shows an increase of 29.5% (拢760m).

Alasdair Reisner, director of external affairs at the Civil Engineering Contractors Association (CECA), said: 鈥淚t is important to exercise caution when dealing with a single set of figures, and it should be noted that these statistics do not necessarily reflect recent results of CECA鈥檚 own Workload Trends survey.

鈥淣onetheless, the sharp decline in new orders in infrastructure should create a degree of caution. The government have placed infrastructure at the heart of its growth strategy, and if these figures represent the beginning of a trend in falling orders and activity in the sector, this will put the UK鈥檚 economic recovery at risk.

鈥淚t is particularly worrying that it appears that workloads have fallen across all elements of infrastructure, including in the rail sector, which has prospered recently. Traditionally the first quarter has also tended to provide relatively strong orders in our sector, so today鈥檚 poor figures come as somewhat of a surprise.

鈥淚t is vital that all efforts are made to ensure that today鈥檚 numbers represent an anomaly, and that the sector returns to growth in orders as soon as possible, supporting employment in our sector and improvements in the wider economy.鈥�

Dr Noble Francis, economics director at the Construction Products Association, said: 鈥淩ecent GDP figures have pointed to signs of growth in the overall economy, but construction has continued to face very challenging conditions with output already 7% lower than a year ago. Today鈥檚 new orders figures reflect these continuing difficulties.

鈥淢ost encouraging were indications of growth in the private housing market. Government policies 鈥� particularly FirstBuy, Funding for Lending and the recently announced Help to Buy 鈥� are giving major house builders the confidence to build. Because private housing has a short time-lag between orders and output, these new orders should lead to a further rise in housing activity this year.

鈥淥f greater concern, however, is the 50% drop in the infrastructure sector since the previous quarter and the 39% fall compared to Q1 last year. This came despite the government鈥檚 regular and enthusiastic pronouncements of support over the last two years, such as the Chancellor鈥檚 拢5bn capital investment 鈥榖oost鈥� in last year鈥檚 Autumn Statement, 拢20bn in new private investment in infrastructure and a further 拢5.5bn capital investment 鈥榖oost鈥� in December.

鈥淎s we have previously highlighted, the government must do better at translating such infrastructure announcements into new orders and real activity on the ground. Those aimed at housing are clearly delivering a beneficial effect; infrastructure must match this if we are to have a sustained economic recovery.鈥�

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