Construction economists questioned accuracy of data after latest figures suggested sector entered recession at start of 2015

Construction

The Office for National Statistics has defended the accuracy of its UK construction output data in the wake of the industry voicing doubts about its recent findings.

Speaking to 好色先生TV, Kate Davies, head of retail sales and construction index at the Office for National Statistics (ONS), said the ONS figures were 鈥渢he biggest and best measure of the UK construction sector鈥.

She acknowledged there were differences between what the ONS published and other research, but added: 鈥淚鈥檓 confident that the data we have published is right. The chained volume data show falls in recent quarters, and this is seen in the current price data.鈥

Construction economists have questioned the accuracy of the data after the organisation鈥檚 latest figures suggested the sector entered recession at the start of 2015. The figures suggested output in the sector decreased by 1.1% over the first quarter of this year, compared with the previous quarter.

Other surveys, such as this week鈥檚 CIPS purchasing managers鈥 data, have pointed to consistent growth in recent months, and the Construction Products Association (CPA) issued a statement in May that said the official data 鈥渃ontradicted a
growing body of recent evidence鈥 which reported growth in construction activity.

Davies made her comments after the ONS last week announced it had decided not to renew its contract with Aecom to help produce the UK鈥檚 construction output figures.

Davies denied Aecom鈥檚 contract had ended because of the controversy over the figures, and said there were 鈥渁 number of factors鈥 in deciding not to renew Aecom鈥檚 contract. She said that the ONS 鈥渘eeded to come up with a solution that would suit everybody鈥.

Davies said: 鈥淲e came to a point where we had to decide whether to extend the contract. When we reviewed it we felt we could do the work in house.鈥

Aecom declined to comment.

James Hastings, head of UK construction forecasting at Experian, agreed the survey was comprehensive, but said this 鈥渄oesn鈥檛 mean there aren鈥檛 issues around the ONS survey鈥.