UK new construction orders - yet another grim data series

If New Labour wanted to spend their way out of a recession, putting some money into the flagging construction sector wouldn't be a bad idea. It is a sector that employs lots of people and produces something tangible, which could be sold, thus recovering some of the original outlay.

However, New Labour have a strong preference for spending taxpayers cash on lifestyle issues. If given a choice to spend public money on an anti-smoking adviser or a bricklayer, the advisor wins out every time.

Construction definitely needs support. Recent new orders data points to a rapidly contracting sector:

Orders in the three months to January 2009 fell by 12 per cent compared with the previous three month period.

Orders in the 12 months to January 2009 fell 20 per cent compared with the previous 12 months and orders in three months to January 2009 fell by 32 per cent compared with the same period a year earlier.

In the three months to January 2009 compared with the same period a year earlier, private housing orders fell by 55 per cent and public and housing association housing orders fell by 45 per cent.