But public sector spending supported recent growth ahead of cuts kicking in
The volume of new orders in Q4 2010 was 拢13.75bn, according to ONS figures released today. This compares with 拢13.35bn in Q4 2009.
While the year on year growth is not particularly strong, quarter on quarter, the figures are much more positive. In Q3 2010 the volume of new orders was 拢11.65bn, so today鈥檚 numbers represent an 18% increase.
According to the figures, all sectors showed growth in Q4 when compared with Q3. But this does not tell the full story as the strongest growth sectors were public housing, which grew from 拢611m in Q3 to 拢1.03bn in Q4, public non-housing, which grew from 拢2.7bn to 拢3.7bn and infrastructure, which grew from 拢1.5bn to 拢2.1bn.
Obviously, these sectors will be coming under further pressure this year and next as government spending cuts really start to bite. Growth in the private sector looks weak and unable to pick up the slack. The private housing and private commercial sectors barely registered any growth in Q4. Private housing new orders increased by just 拢7m, from 拢2.6bn in Q3 to 拢2.607bn in Q4, while private commercial sector new orders increased from 拢3.77bn to 拢3.78bn.
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