New work lifts construction output 0.4%

Aaron Morby 2 years ago
Share

Construction enjoyed modest growth in output during August despite growing headwinds from energy and cost inflation in the economy.

Number crunchers at the Office of National Statistics also upwardly revised previous output figures for July.  This moved the official figures from a 0.8% contraction in construction output to sluggish 0.1% growth for the month.

Revised output figures show construction output is holding firm


The August rise in monthly output came solely from an 1.9% increase in new work, with repair and maintenance falling 2.0% on the month.

Main drivers were infrastructure, private industrial and private housing new work, which increased 5.3%, 4.3% and 1.7%, respectively.

The level of construction output is now 3.2% (£461m) above the February 2020 pre-coronavirus benchmark.

Mark Robinson, group chief executive at procurement group Scape, said:  “The construction industry continues to defy wider market conditions to contribute to what is now a near year-long run of growth in the sector.

“As we come out of peak season however, it’s clear that we are set for a challenging winter as inflation continues to affect costs for private and public sector projects alike.

“The Chancellor’s welcome energy support package will no doubt help, but project teams will need to work in close collaboration to manage costs as projects and pricing evolve.

“Continued investment in public sector building projects will be vital for the well-being of the construction industry – and the country – as a whole this winter, with our figures showing that the sector delivered more than £1bn of social value last year alone.”

Clive Docwra, managing director of property and construction consultancy McBains, said: “The moderate growth witnessed in August shows the construction industry is holding firm during a difficult period.

“However, there are still bumps in the road to be negotiated.  Material price inflation may be starting to fall, according to recent figures and from what our clients are telling us, but the cost of construction remains high and further volatility over the medium term can be expected as factors such as Russia’s invasion of Ukraine and the energy crisis bites harder.

“And despite the increase seen in private investment, the risk of recession and high interest rates means some investors are still holding the pause button until the economic picture becomes much clearer.”

 

 

Latest news

Keltbray fine increased to £18m after failed bid rigging appeal

Contractor loses penalty discount for settling with competition authorities
16 hours ago

Luxury house builder goes under with 70 job losses

Octagon Developments in administration after 40 years in business
1 day ago

Top Ten best read stories of 2024

The biggest headlines of an eventful year. Have a good one and here's to a successful 2025
1 day ago

BAM Nuttall fined £800,000 after concrete skip tragedy

Young labourer killed by falling bale arm
2 days ago

Keltbray infrastructure business reveals new name

AUREOS means "new dawn" after private equity acquisition
1 day ago

Stiffer fines for over-running street works from next Summer

Cash raised from lane rentals to be channeled into pothole repairs
1 day ago

£113m Basildon rental homes scheme seals build finance

Work expected to start early next year on Market Square project
1 day ago

Notting Hill Genesis seeks more tier 1 repairs contractors

London housing trust seeks eight firms for new £1.5bn repairs framework
1 day ago

Reclaimed steel oil rig columns worked into London office revamp

Curo will use reclaimed bricks and steel for Fitzrovia office overhaul
2 days ago

CITB delays levy approval consultation

Levy agreement talks pushed back by ongoing review into effectiveness of training body
2 days ago

Ofwat approves £104bn water industry spending plan

Household water bills to rise by 36% to fund quadrupling of investment
2 days ago

Costain/ Siemens JV clinches HS2 power supply job

£300m deal for HV power supply systems over the 225km route
2 days ago

Demolition team assembles on Multiplex London Wall site

Erith to start work next month at Deutsche Bank's former headquarters
3 days ago

Norwich Council acts to revive £300m Anglia Square scheme

Council uses Homes England funding to buy stalled site with planning for 1,100 homes
2 days ago

Go-ahead for 4,500-home Cambridgeshire new town

Waterbeach new town plan stalled three years ago after an Environment Agency objection
2 days ago

Henry Boot to take total control of Stonebridge Homes

Deal worth at least £30m
2 days ago

HS2 costs could hit £66bn

Government looking for next estimate to be lower
3 days ago

Mace to close construction logistics arm

Specialist business being wound down
3 days ago

National Grid to invest £35bn over next five years

Plan set out for record investment in electricity transmission infrastructure
3 days ago

Profits double at Barhale

Civils specialist sees order book top £1bn
3 days ago

Balfour wins 68km HV underground power cable deal

Main works to start next year on Eastern Green Link 2 job
3 days ago

Stunning site wrap unveiled on Sloane Street

Hoarding creates illusion of fully formed façade on £53m Galliford Try job
3 days ago

Heathrow Airport upgrade spend takes off again

Airport operator will spend £2.3bn over the next two years
3 days ago

Government buys back over 36,000 military homes

Public ownership deal to release wave of upgrade and new build work
4 days ago

Story Contracting staff braced for rail job losses

Work coming through slower than expected from Network Rail
4 days ago

Ballymore submits two plans for 3,700 East London homes

Construction could start in 2025 on Thames Road and Knights Road schemes
4 days ago

Blackpool council steps in on failed developer’s £300m scheme

Blackpool Central site clearance to start in the New Year as hunt starts for new developer
5 days ago

Brookfield submits retro-first London office plan

Milton Gate plan for Square Mile will hike space by nearly 50%
4 days ago

Bowmer + Kirkland gets start date for £100m Siemens site

Construction to begin early next year on Chippenham scheme
5 days ago

Torsion sells under-construction Leeds BTR scheme

Concrete frame due to start soon on 300-apartment complex
5 days ago

Contractor services