Construction swings from weakest to strongest sector

Aaron Morby 6 months ago
Share

Construction output rebounded in May ending three consecutive months of decline.

The 1.9% jump in activity was driven mainly by new work, up 2.7%, while repair and maintenance delivered a lower increase of 0.8%.

At a sector level, both private and public new housing returned to 2.8% growth, while infrastructure new work rose by 3.5%.

Scott Motley, head of programme, project and cost management at Aecom, said: “An increase in output following three months of decline will give the construction industry a much-needed boost.

“Confidence will also be buoyed following the General Election result and the clarity and stability Labour’s parliamentary majority provides for the nation’s future direction.

“Ambitious manifesto pledges combined with action in the first few days of the administration suggest infrastructure will be a clear priority.

“However, those ambitions will only be realised with a new level of cooperation between the government and the private sector from the outset.”

Clive Docwra, managing director of property and construction consultancy McBains, said: “After previous statistics showed the construction sector lagging behind the modest uptick in growth witnessed in other industries, today’s figures are much better than expected.

“Especially welcome is that growth was experienced across most work sectors, with new housing seeing a 2.8% increase.

“Whether or not this represents the green shoots of recovery, however, is unclear.  Over the three months to May output still decreased by 0.7%, showing that growth is still fragile.

“Despite these returns, the sector still needs a shot in the arm, and developers will hope Labour’s announcement this week to get the country building translates into renewed confidence from investors, both in housing and commercial projects.

“What every sector within the industry will be crossing their fingers for is a period of economic stability to help construction across the board get back on track.”

Michael Wynne, director of the sustainable house builder, Q New Homes, said: “The jump in output can only be partly explained by the contrast between May’s good weather – which was officially the warmest on record – and the rain-soaked April, which delayed work on many building sites.

“Levels of new house building spiked by 2.8% during the month, and while this is very welcome it’s worth remembering that this figure is flattered by comparison to the low levels seen during the first part of the year.”

Latest news

Morgan Sindall contracts league champion for second year

Kier ranks second in closely contested race between majors
11 hours ago

New Year layoffs as Scottish modular house builder collapses

East Ayrshire Connect Modular falls into administration
11 hours ago

Thames Water bidders day for £2.2bn reservoir scheme

Tenders to be invited in October for new Abingdon reservoir in Oxfordshire
11 hours ago

Buckingham Plant Hire quits heavy kit market

Firm to sell fleet and focus on lighter, sustainable plant
1 day ago

Clients ‘ignoring building safety’ reforms

Clients still subjecting contractors to aggressive and sub-economic pricing
10 hours ago

Castleforge plans expansion after £100m data centre deal

Investor moves into booming data centre market
11 hours ago

Construction output growth drops to six-month low

Subcontractor rates rise at fastest rate for 18 months
1 day ago

Suir Engineering swoops for Scottish M&E contractor

Irish M&E firm launches UK expansion with Taylor & Fraser acquisition
1 day ago

Aggregates supply firm files administration notice

Ashville Aggregates and Concrete operates across London and South East
1 day ago

Plans in for 44-storey Manchester resi tower

Developer Glenbrook to appoint contractor this year
2 days ago

Briggs & Forrester names new engineering services MD

Will Newman replaces Ian Lawrence who steps down after eight years
1 day ago

Morgan Sindall bags Salford Uni acoustics building

Planning submitted for Acoustics Building at Crescent Innovation area
2 days ago

Lambeth to release six sites for £250m homes plan

Call for development partner to deliver 450 mixed tenure homes
1 day ago

Adrian Speller joins brother as joint MD of Midlands builder

Speller Metcalfe boosts senior leadership team
2 days ago

Winner unveiled for £2.9bn aqueduct revamp

Construction costs for Haweswater Aqueduct rise to £2.9bn from £1.75bn
5 days ago

Fortem and Equans face fight for £3bn housing upkeep deal

Birmingham City Council aims to sign new 10-year deals for four regions
2 days ago

Lendlease strikes deal to sell UK construction arm for £35m

US private equity firm Atlas to finalise purchase deal by summer
6 days ago

Hercules to offload suction excavator arm

Fleet of 30 trucks generates around £5m revenue a year
2 days ago

Tarmac trials new technique to cut concrete road noise

Quieter trips for drivers and longer-lasting roads
2 days ago

HS2 set for “fundamental reset” to lower construction costs

New chief executive promises action after latest project update
1 week ago

Solar panel installer fined £120,000 after roof fall

Court hears how employee broke his leg in fall
6 days ago

Network Rail chief Andrew Haines knighted

Thin pickings for construction in this year's New Year Honours
1 week ago

Staff stunned as engineering consultancy Clarkebond closes

Firm was only bought three months ago by rival Independent Design House Group
2 weeks ago

Vistry issues third profit warning in three months

Profit expected to fall £50m below forecast due to delayed completions
2 weeks ago

Miller Homes buys St Modwen Homes for £215m

Scottish house builder snaps up £368m turnover rival
3 weeks ago

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

Contractor loses penalty discount for settling with competition authorities
3 weeks ago

Luxury house builder goes under with 70 job losses

Octagon Developments in administration after 40 years in business
3 weeks 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
3 weeks ago

BAM Nuttall fined £800,000 after concrete skip tragedy

Young labourer killed by falling bale arm
3 weeks ago

Keltbray infrastructure business reveals new name

AUREOS means "new dawn" after private equity acquisition
3 weeks ago

Contractor services