Construction swings from weakest to strongest sector

Aaron Morby 9 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

Buyers flag fears over civil engineering slowdown

All sectors in reverse during "challenging" March
10 hours ago

Torsion and Khalbros to build new Leeds £1bn neighbourhood

Eastgate Quarter site acquired from Hammerson
1 day ago

Winners named for £380m Scottish council housing upkeep deal

PfH Scotland names 38 firms for social housing landlord deal
14 hours ago

Kier wins first phase of £700m Warwick Uni campus build

Firm to start work on science and engineering precinct last this year
1 day ago

JCB to double size of US factory in wake of Trump tariffs

$500m Texas factory under construction to expand to 1m sq ft
1 day ago

Green light for £2.4bn Luton Airport expansion

Government go-ahead to transform airport
1 day ago

Mivan looks to boost supply chain network

Subcontractors and suppliers invited to meet the buyer event: Book places now
15 hours ago

Diversification pays off for concrete frame specialist Statom

Strong results as £180m turnover firm expands into infrastructure sector
1 day ago

Cardo in talks to buy Breyer roofing arm

More than 100 jobs could be saved at Breyer Roofing
2 days ago

Quartet win £750m Wales & Western railway deal

Network Rail confirms partners for Reactive and Minor Works framework
2 days ago

Plans in for £350m London Bridge life sciences hub

Snowsfields Quarter will consist of three buildings containing labs
2 days ago

Surging labour costs push tender price forecast up

Pick-up in tender prices despite weak growth
2 days ago

Permasteelisa wins cladding deal on Multiplex city tower

Facade specialist wins work on Fenchurch Street ‘hanging gardens’ tower
2 days ago

Wates wins fit-out for Manchester First Street Hub

Smartspace arm secures another Government hub deal
2 days ago

Peel Ports reveals winners for £750m framework

18 firms win places on deal: Full list
2 days ago

Big trade names dropped in M Group rebrand

Acquisitive group formed from Morrison Utility services in 2016
2 days ago

Breyer Group files administration notice

Staff hope rival firm could buy assets and save jobs
3 days ago

Former Severfield director takes helm at Embrace Steel

New CEO Martin Kelly aims to step up expansion of steelwork contractor
3 days ago

£302m upgrade funding awarded to FE colleges – list

Cash shared out between England’s 179 college groups
3 days ago

FK Facades thrives but construction arm hit by ISG row

Dispute with failed contractor costs specialist £5.5m
3 days ago

Galliford Try gets go-ahead for Milton Keynes PRS tower

33-storey tower needs gateway 2 approval before work can start
3 days ago

Small house builders get £150m funding for green homes

Developers will have to meet-up to ten new criteria to benefit from interest rate discounts
3 days ago

Lendlease Construction renamed Bovis

US private equity firm completes £35m purchase of UK contracting business and rebrands
4 days ago

Breyer Group battles for survival as rivals circle

Housing maintenance firm fights three winding up petitions in a month
4 days ago

Careys facing £2.4m claim by developer over demolition cartel

Giant Hong Kong developer claims it was overcharged on Lots Road Power Station job
4 days ago

Multiplex profit drops a third as revenue rises to £780m

Spate of new orders sets contractor up for three years of work
4 days ago

Galliford Try and Breheny land latest Sizewell C road deals

More infrastructure deals for new nuclear power station
4 days ago

Worker trapped in collapsed septic tank pit

Contractor and director fined after worker suffers multiple fractures
4 days ago

Homes England buys stalled Broad Marsh site

Demolition to finally be completed as developer hunt begins
4 days ago

Vistry go-ahead for 353 homes at Rochester Riverside

Work to start on next phase of Kent town regeneration at end of this year
4 days ago

Contractor services