Then amount of construction orders increased by 5% in the third quarter of 2014 in comparison with the previous quarter according to official data.



The figures from the Office for National Statistics (ONS) were published this morning showing the amount of new construction orders has grown to £12.6bn in the third quarter of 2014, whilst the previous quarter was £12bn, with year-on-year growth in new orders is around 3.2%



The overall increase was brought about due to an overall growth in both private residential and private commercial construction projects.



The increase would have represented further growth if it weren’t for the decline of private industrial and public housing orders.



This is great news following the recent announcements that October’s construction output had fallen by 2.2% when compared to September, overall this is in line with predictions from industry, including the recent growth figures published by the British Chambers of Commerce.



Stefan Friedhoff, global managing director for construction at Lloyds Bank Commercial Banking, commented that the market had slightly cooled, confirming anecdotal evidence, but going on to say that most wouldn’t be surprised by the figures, the education, construction supplies, small and large contractors all having been impacted.



He added: “Construction companies are grappling with myriad issues, including inflation-led cost overruns, a competitive bidding environment and labour constraints. The shortage of skilled workers is undermining current output levels and, unchecked, it threatens the long-term health of the sector.



“Despite the headwinds companies face, however, the sector itself is still in long-term growth, even if it remains in recovery mode, particularly in the regions outside London and the South East.”