Monthly construction output is estimated to have decreased 0.5% in volume terms in August 2023 – the second consecutive monthly fall, according to the latest data from the Office for National Statistics (ONS).
The fall in output came solely from a 1.5% decrease in new work, partially offset by a 1% increase in repair and maintenance work on the month.
Five out of the nine sectors tracked experienced a fall in August 2023, with the main contributors to the monthly decrease seen in private commercial (-4.1%) and private new housing (-1.4%).
In the three months to August 2023, construction output increased 0.9% thanks to increases in new work (0.9%) and repair and maintenance (0.9%).
Clive Docwra, managing director of property and construction consultancy McBains, said: “This second successive monthly fall in output comes as little surprise. Recovery in the sector still looks some way off while interest rates remain high and caution is still the watchword for many investors, especially in the critically important housebuilding sector where demand remains dampened.
“Longer-term, the scaling back of HS2 is also likely to have a knock-on effect in terms of new commercial and infrastructure contracts further down supply chains, so the outlook is now increasingly uncertain in other work sectors too.”
