Construction output increased by 0.8% in the third quarter of 2024, soley driven by an increase in new work.

The Office for National Statistics said new work rose by 2% from July to September, compared with Q2, with repair and maintenance falling by 0.6%.

The upward trend across the quarter held, despite monthly construction output growing by just 0.1% in volume terms in September.

This came solely from a rise in repair and maintenance (0.4%) as new work fell by 0.2%.

At the sector level, four out of the nine sectors grew in September - the main contributor to the monthly increase was private housing repair and maintenance, which grew by 1.3%.

Total construction new orders fell 22.0% (£2,722m) in Q3 compared with Q2;.

This quarterly decrease came mainly from private new housing and private commercial new work, which fell 31.3% (£861m) and 20.8% (£786m), respectively.

The annual rate of construction output price growth was 2.0% in the 12 months to September 2024.

Scott Motley, head of programme, project and cost management at AECOM, said: “The sector’s impressive run of form continues, and firms will be encouraged by the pipeline of new work available to help stem the traditional winter slowdown.

“If it wasn’t clear before, yesterday’s Mansion House speech shows that infrastructure investment is the cornerstone of the government’s plans for economic growth.

"The task for the sector will be seizing on these opportunities effectively and helping align private funding with public sector investment so that schemes get on-site quickly.

“Healthcare, transport and education continue to be the three priority areas for work, both new-build and retrofit.

"Despite the prospects of increasing labour costs, bigger order books and a more certain pipeline of new work should help to offset any concerns and put firms on the front foot heading into 2025.”

The news comes after a report from Barbour ABI which showed approval of infrastructure projects increased 298% in October, the second consecutive month the sector has posted triple digit gains. The increase followed September’s rise of 136%.

Barbour ABI said the huge gains were driven by big movements in green energy projects with five renewable energy schemes – all above £100m in value – driving the October gain.

Ossian Offshore Wind Farm 3.6GW is the largest of these projects at £3.6bn. It is one of the largest floating offshore wind project in the world.

In the previous month 700MW and 1000MW battery storage projects in Scotland and the North-east were behind the big numbers.

Elsewhere housebuilding saw some positive signs as the government searches for ways to meet a 1.5million homes pledge.

Whilst the overall value of contracts awarded for construction projects have remained stable, residential saw its highest month since January 2023 soaring 41% to £2.5bn, helped along by two projects totalling £540m in the North-west.

Commercial and retail projects saw a strong month for contract awards rising 189% to £1.1bn after the worst month this year in September with three projects in London worth more than £100m helping the sector.