Monthly construction output fell 1.4% in April

By
BE News Team

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Monthly construction output is estimated to have decreased by 1.4% in volume terms in April, according to the latest numbers from the Office for National Statistics (ONS).

The fall was due to a 1.9% decrease in new work and a 0.8% fall in repair and maintenance work. The ONS said anecdotal evidence from survey returns suggested heavy rainfall and strong winds affected output.

Seven out of the nine sectors experienced a fall in April 2024 with the main contributors to the monthly decrease being private housing new work and private housing repair and maintenance, which fell by 4.4% and 2.5% respectively.

Construction output is estimated to have decreased by 2.2% in the three months to April 2024 – the sixth consecutive fall in the three-monthly series.

Clive Docwra, managing director of property and construction consultancy McBains, said: “After last month’s figures showed the construction sector still mired in technical recession, today’s figures come as a further blow for the industry. A close to 2% fall in new work across the board highlights the continuing caution shown by investors being reluctant to commit to new projects while so many economic uncertainties remain. New work in private housing in particular remains in the doldrums, seeing a fall of more than four percent.

“Many in the industry are crossing their fingers for a post-election boost, but today’s figures show that whichever party forms the next government has a job on its hands to restore confidence and encourage growth.”

Brian Berry, chief executive of the Federation of Master Builders (FMB), added: “The latest ONS figures show a worrying trend emerging, with decline in construction output recorded in each of the first four months of 2024. While survey data collected by the ONS indicates that continued wet and windy conditions once again contributed to the struggles of construction firms, the stagnation seen across the UK economy suggests this is part of a wider problem.

“The performance of the construction industry is a key element of the UK’s overall economic performance. With the general election fast approaching, and all of the major political parties claiming sustainable long-term growth will be a priority, it is essential that construction receives the attention it needs. By boosting house building rates, providing support to people looking to carry out energy efficient upgrades to their homes, and taking steps to address the current skills crisis in construction, the next government can set the UK on the road to a brighter future.”

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