Construction output grows for fourth month running

Latest figures from the Office of National Statistics show construction output grew for the fourth consecutive month in October, taking the industry to nearly 5% above the pre-pandemic activity watermark.

The overall 0.8% rise in October output came from increases in both new work (0.5%) and repair and maintenance (1.3%) on the month. This was ahead of the 0.5% seen for the UK economy as a whole.

At the sector level, five out of the nine sectors saw a rise in October 2022, with the main contributors to the monthly increase seen in private new housing, and non-housing repair and maintenance, which increased 2.9% and 1.7%, respectively.

Furthermore, annual price inflation is starting to show signs of easing from the high level in mid-2022.

Mark Robinson, group chief executive at SCAPE, said: “Growth in the construction sector is encouraging to see, especially in today’s economic climate.

“However, with the UK now in recession, the industry will be conscious of the long-term challenges of inflation, labour and materials supply throughout the winter.

“Investment in public sector infrastructure has always been a key driver of output in times of downturn. That said, contractors will be mindful of the impact of real-term spending cuts. Many local authorities will still be confirming their budgets for the next year, with the most proactive already openly engaging with delivery teams to ensure important regeneration projects are scoped effectively.”

updated: 14/12/2022