Construction starts climb-back after cliff-edge output fall

Aaron Morby 5 years ago
Share

Construction output rose by 8.2% in May after the record cliff-edge fall suffered in April at the height of the industry’s lockdown.

But the bottom bounce still left monthly construction output £5.2bn lower or 39% down on the pre-Covid-19 lockdown level in February.

May’s 8.2% surge in construction is more than four times better than the growth seen in the wider economy.

After April’s gravity-defying 40% plunge in monthly output, the industry’s fightback figures appear exceptional with private sector house building jumping by over a fifth, and public sector residential construction surging 42%.

Fraser Johns, finance director at Beard, said: “After April’s huge 40% drop in output, it’s encouraging to see May’s figures beginning to point towards a recovery in construction work.

“It has been one of the sectors worst-affected by Covid-19, and for the construction industry itself and also for the health of the wider economy, it is vital that this recovery continues to gather pace.

“Under normal circumstances, a month-on-month increase of 8% would be something to shout about, but with output still nearly two-fifths lower than in February, it will clearly be a long haul to get back to similar volumes as before the ‘lockdown’.

“Many firms will continue to suffer in the meantime, but the industry is adapting to new working procedures and finding ways to increase efficiency.

“Times are likely to remain hard for some time to come, but we will get through this.”

Large falls across all sectors drove the record fall in output in the three months to May 2020

In the three months to May construction output is still 30% down compared to the previous period.

Private new housing and private commercial were the largest contributors, falling by 42.5% and 29.5% respectively.

Gareth Belsham, director of the national property consultancy and surveyors Naismiths, said: “These are still very early days. While the absolute worst may be past, the industry is still braced for the whiplash effect of what may be a long and painful recession.

“Fragile business confidence and weak levels of investment will continue to constrain demand for many months, and the road to recovery will be long and hard. But at least it starts here.”

Latest news

HS2 Curzon Street station redesign approved as timber roof axed

Change to meet stricter fire safety rules and cut maintenance costs
2 hours ago

Care home fire trial collapses

Prosecution withdrawn against four firms including Morgan Sindall Property Services
24 hours ago

Leicester rebids £22m station revamp after failed tender race

Council opts for ECI route after receiving one bid for project
3 hours ago

Kier wins East Coast College rebuild job in Great Yarmouth

Work to start this summer for 1,300-student college
3 hours ago

R G Carter wins £28m hospital car park job in King’s Lynn

MSCP paves way for £1.5bn Queen Elizabeth Hospital rebuild in 2027
3 hours ago

London to relax green belt building rules

Sadiq Khan shifts position on planning
3 hours ago

Willmott Dixon wins Great Yarmouth waterfront deal

North Quay 10.5 acres mixed-use scheme to advance
23 hours ago

SIG chief quits to join Travis Perkins

Gavin Slark to leave by the end of this year
4 hours ago

Eight take key spots on £250m Prosper framework

Housing and public building upkeep deal for North East awarded
24 hours ago

Early call-out for £150m Ebbsfleet Garden City infrastructure

Bidders day to set out plan for Ebbsfleet Central commercial scheme
2 days ago

McLaren storms April contracts league with flurry of wins

Cardiff Bay Arena job headlines a series of big contract wins
1 day ago

Balfour Beatty lifts cash forecast after strong first quarter

Contractor set to hit £1bn average monthly net cash in 2025
1 day ago

Goldman Sachs-owned Adler & Allan buys 180-strong civils outfit

West Country's Glanville Environmental gets new owner
1 day ago

Caddick lands first contract for £200m Skelmersdale revamp

Developer gets green light for masterplan
1 day ago

Van Elle sells HGV fleet to haulage firm

WS Specialist Logistics pays £2.9m to take on fleet and drivers
1 day ago

Buyers more bullish about prospects for year ahead

Residential "resilient" but commercial work a weak spot
2 days ago

Council backs first Brutalist car park-to-flats scheme

Newcastle-under-Lyme multi-storey car park to be reborn as pioneering homes scheme
2 days ago

Hinkley Point C hits peak build with 26,000 jobs

3,000 more workers to join as fit-out work ramps up
2 days ago

Over 40 firms win Wessex Water M&E minor works deal

Broad sweep of specialists picked for AMP8 programme
2 days ago

Spencer lands Scottish bridge hat-trick

Steelwork, gantries and bearing upgrades on Kessock, Forth and Tay crossings
3 days ago

Winners revealed for £1.5bn decarbonisation deal

Fusion21 confirms places for 40 firms: Full list
2 days ago

Cladding firm fined £225,000 after fatal fall

Court hears how cherry picker didn't reach all parts of repair job
2 days ago

Completed buildings caught-up in Gateway 2 chaos

Developer distraught after dealing with Building Safety Regulator
3 days ago

Aviva submits plans for 34-storey City office tower

Subject to planning work to start in autumn 2027
3 days ago

Murphy takes 40% stake in Aussie civils contractor

Firm enters Australasian market with stake in Sydney-based contractor Abergeldie
4 days ago

Moat seeks firm for £420m repairs and maintenance deal

15-year deal to upkeep 20,000 south east homes
3 days ago

Lynch takes over hotel for Sizewell plant operators

Hire giant now in the hotel business to guarantee accommodation for workers
3 days ago

Subcontractors wanted across Scotland

Latest Constructionline event in Glasgow: Register now
3 days ago

Six guilty of £2m bribery over Devon housing site deals

Corrupt building bosses and E.ON project chief and QS sentenced
1 week ago

1,650 former ISG staff launch legal claims

Redundancy Payment Service facing payout of more than £9m
1 week ago

Contractor services