2007 new orders start poorly

PDF of January 2007 orders

New orders in the three months to January were worth £11bn in value, according to the latest data from the Department of Trade & Industry – that figure represents a 7% drop against the previous three months, but more worryingly a 3% fall compared with the three months to January 2006.

The bad news was emphasised by the falls in volume: 7% against the previous three months and 6% against the three months a year ago.

Against the previous three months, just 11 of the subsectors showed improvement in value, the main bright spots being a 15% boost for both roads and offices and a 14% jump for shops.

In volume, only other public and private industrial enjoyed a boost. Public housing slumped 33%, while private commercial fell 13%.

Against the three months a year ago, the situation looks a little healthier, with both housing sectors showing value and volume growth, while orders (in value) for offices grew 42% and orders for roads were ahead 41% .

In the year to January, the comparisons are much more favourable: new orders value increased 6% to £47.6bn, while volume rose 3%. The bright spots remained so: public housing up 35% in value and 31% in volume, and private commercial up 20% in value and 21% in volume.