NEWS / Infrastructure Intelligence / Construction activity rises for a second month, says ONS

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15 AUG 2024

CONSTRUCTION ACTIVITY RISES FOR A SECOND MONTH, SAYS ONS

Monthly construction output grew by 0.5% in June, boosted by rises in both new work and repair and maintenance.

Latest data from the Office for National Statistics showed growth in June wasn’t at the same pace as seen in May – which saw a 1.7% rise – but seven out of the nine construction sectors did report growth.

In June new work rose by 0.9% and repair and maintenance saw a slight increase at 0.1%.

At the sector level the main contributors to the monthly increase were from non-housing repair and maintenance, and private commercial new work, which grew by 3.2% and 2.1%, respectively.

But second quarter figures for April to June were down 0.1% due to a decrease in new work (0.5% fall), as repair and maintenance grew by 0.4%.

Total construction new orders grew by 16.5% (£1,771 million) in Q2, compared with Q1- 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.

Weather continued to impact work – with rain delaying some work and warmer weather leading to an increase in output in some areas in June.

Scott Motley, head of programme, project and cost management at AECOM, welcomed the figures – saying they showed the sector was moving in the right direction.

“A second consecutive month of increasing output is further proof of the sector trending in the right direction, and there’s reason to be confident that this will only continue,” he said.

“Housebuilding has long been a drag on the sector’s output, so Labour’s quick action to accelerate the delivery of new homes should bolster both confidence and work pipelines.

“And, combined with interest rates beginning their descent, it’s likely we’ll also see more emboldened clients firing the starting gun on new projects.

“The key challenge now will be increasing capacity, particularly addressing shortages of skilled labour, to help the industry absorb the influx of new orders.”

 

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