Construction output decreased in February
The Office for National Statistics has published estimates of construction output for February 2024. The estimates show that monthly construction output is expected to have decreased 1.9% in volume terms, which follows a 1.1% increase in January 2024. The monthly value in level terms was £15,229M.
The decrease in monthly output came from decreases in both new work (2.3% fall), and repair and maintenance (1.4% fall); anecdotal evidence from survey returns suggested effects of heavy rainfall led to delays in planned work and decreasing output in February 2024.
At the sector level, eight out of the nine sectors saw a fall in February 2024, with the main contributors to the monthly decrease seen in non-housing repair and maintenance, and private commercial new work, which decreased 2.5% and 4.0%, respectively; the only increase was private housing repair and maintenance, which grew 0.2%.
Construction output is estimated to have decreased 1.0% in the three months to February 2024; this came solely from a decrease in new work (3.0% fall), as repair and maintenance increased by 1.6%.
Brian Berry, Chief Executive of the FMB said: “It is concerning to see another decline in construction output of 1.9% this month, and this is compounded by the overall decrease of 1.0% in the three months to February. While growth had been seen in January, these figures underline the challenging winter period that UK construction has faced. It is particularly concerning that this decline was in part led by a drop in repair and maintenance work, a sector that had been doing well last year, comparatively to other sub-sectors.
“Survey responses from the ONS research suggest that this was down to poor weather conditions, with heavy rainfall hindering many projects, and we’ll have to see if warmer spring weather brings a welcome boost for builders.
“Despite overall Gross Domestic Product (GDP) being up slightly this month for the wider UK economy, the decline in construction output is holding back substantial improvement.
WAs we head into the drier months, the Government needs to take this opportunity to help boost that construction activity, which could take the form of helping to step up house building and measures to help owner owners make their homes more energy efficient. These two measures would help drive economic growth.”
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