UK construction output rises

Monthly UK construction output is estimated to have grown by 0.5% in June 2024, according to new ONS (Office for National Statistics) figures. This came from rises in both new work (0.9%) and repair and maintenance (0.1%). This was the second month in a row recording growth, following growth in output in May of 1.7%.
August 20, 2024
By Guy Woodford
Monthly UK construction output is estimated to have grown by 0.5% in June 2024, according to new ONS figures. Pic: Iryna Melnyk Photo 273210660 Dreamstime.com

Monthly output for April was revised upwards by 0.1% to -1.0%. Anecdotal evidence suggests heavy rainfall and strong winds limited output in April.

At the sector level, seven out of the nine sectors grew in June 2024, with the main contributors to the monthly increase being non-housing repair and maintenance and private commercial new work, which grew by 3.2% and 2.1%, respectively. As a result of the growth in output in June, output in the second quarter is estimated to have virtually matched Q1 levels, falling by only 0.1% compared with Quarter 1 (Jan to Mar) 2024. This came solely from a decrease in new work (-0.5%), as repair and maintenance grew by 0.4% in Q2. ONS data shows that growing R&M activity in recent years has been supporting overall activity while new work has been declining.

For output in Quarter 2, five of the nine sectors fell in Quarter 2, with the largest contributors being private housing repair and maintenance and public new housing. These sectors fell by 2.6% (£216 million) and 8.2%  (£112 million), respectively. The strongest growth in Q2 was for non-housing repair and maintenance, which grew by 3.0% (£300 million). Total new orders for construction grew by 16.5% (£1,771 million) in  Quarter 2 compared with Quarter 1 2024. This quarterly increase mainly came from private commercial new work and infrastructure new work,  which grew by 15.1% (£503 million) and 23.4% (£389 million), respectively.

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