Monthly construction output is estimated to have risen by 1.9% in volume terms in May 2024 following a fall of 1.1% in April, according to the latest data from the Office for National Statistics (ONS).
The increase in output was as a result of increases in both new work (2.7%) and repair and maintenance work (0.8%). Anecdotal evidence from survey returns noted that warmer weather contributed to May’s increased output.
Eight out of the nine sectors saw growth in May, with the main contributors being new housing (2.8%), infrastructure new work (3.5%) and non-housing repair and maintenance, which grew by 2.1%.
Construction output is estimated to have fallen by 0.7% in the three months to May 2024. This was due to a 0.9% decrease in new work and a 0.3% fall in repair and maintenance work.
Clive Docwra, managing director of McBains, said: “After previous statistics showed the construction sector lagging behind the modest uptick in growth witnessed in other industries, today’s figures are much better than expected. Especially welcome is that growth was experienced across most work sectors, with new housing seeing a 2.8% increase.
“Whether or not this represents the green shoots of recovery, however, is unclear. Over the three months to May output still decreased by 0.7%, showing that growth is still fragile. Despite these returns, the sector still needs a shot in the arm, and developers will hope Labour’s announcement this week to get the country building translates into renewed confidence from investors, both in housing and commercial projects. Every sector within the industry will also be crossing their fingers for a period of economic stability to help construction across the board get back on track.”
Brian Berry, chief executive of the Federation of Masters Builders, added: “Following the general election, the new government has an opportunity to capitalise on improving conditions to deliver real change for the industry. It is encouraging that the new chancellor used her first major speech to make clear that delivering housing and planning reforms will be a priority.
“However, there are serious questions about how these initiatives will be delivered, due to the ongoing construction skills crisis. The new government must now set out a long-term plan for how the skills shortage will be addressed.”
