Construction output continues to rebound

Aaron Morby 1 week ago
Share

Latest official construction output figures for July point to a continuing construction rebound.

July output figures show industry continues on recovery path despite some concerns about orders
July output figures show industry continues on recovery path despite some concerns about orders

Monthly construction output increased by nearly 18% in July keeping the recovery on track, despite buyers raising concerns about an orders wobble in August in the Chartered Institute of Procurement & Supply sentiment survey.

The rise in July output is the third consecutive month of growth since the record 40% plunge in April.

Infrastructure work made big gains and returned to higher than pre-pandemic levels.

It ranked as the only sector to see growth, increasing by 6% in the three months to July, compared with the previous three months.

Over the same trend period, all new work is still down by around 10%, the largest single contributor to which was private new housing, which fell 17%.

Clive Docwra, managing director of construction consultant McBains, said: “Construction is still a long way from being out of the woods and the upturn is extremely fragile.

“The big concern for the industry is if there’s a second spike and a further lockdown. The government needs to do all it can to ensure the sector maintains its recovery.

“On top of this, of course, a potential no deal at the end of the Brexit transition period is making investors nervous about committing to new projects.

“The Prime Minister may want the industry to ‘build, build, build’ but that’s difficult when many investors are saying ‘wait, wait, wait’ and holding off embarking on new developments until there’s greater clarity.”

Fraser Johns, finance director at Beard, said: “In a sense there was really only one way these figures could go starting from such a low base back at the start of Q2.

“But continued growth at this rate for the third consecutive month has to be a good thing.

“However it is interesting to note that across the sectors, and therefore the economy as a whole, the rate of recovery is not as strong as it was in June with construction growing at 17.6% compared to 23.6% previously.

“This is likely to be down to a number of factors but would reflect what we’re seeing on the ground.

“We face a challenging 12 months ahead based on continued uncertainty in the economy, and the affect this is having on getting project decisions over the line.

“So while it’s welcome to see overall GDP grow by 6.6%, a return back to pre-pandemic levels simply cannot come quickly enough.”

Allan Callaghan, managing director of Cruden Building, part of the Cruden Group said: “Encouragingly, at Cruden, we are seeing a surge in demand for new homes and have secured a robust forward order book to help address the country’s chronic undersupply of housing across all tenures.”

Latest news

10,000 jobs at risk in nuclear supply chain without Sizewell C

Contractors urge Government to back new Suffolk nuclear power station
3 days ago

Lendlease sells London office tower for flats revamp

Grant Lipton buys Chiswick office block to covert to 137 homes
2 days ago

Aecom wins PM role for £700m Whipps Cross hospital

Construction is hoped to start befoe the end of 2022
2 days ago

Kier plunges to £273m loss

Heavy restructuring costs and building losses set Kier back
3 days ago

Tolent order book rises to £190m despite southern exit

Directors wind down loss-making southern business to focus on north and central England
3 days ago

Hull contractor writes roadworks sign in local dialect

"Yer Jerking, Merr Rerd Werks" sign unveiled by M B Roche & Sons
3 days ago

M&E firms now optimistic after worst fears not realised

Firms in positive mood even with furlough scheme drawing to a close
2 days ago

£216m deal for East Coast Main Line power upgrade phase 2

Rail Electrification Alliance, including VolkerRail and Murphy, signs contracts
3 days ago

Tender prices hold firm but likely to fall 2.5% in 2021

Mace cost consultancy forecasts bid pricing fall next year
3 days ago

Skanska chief to chair CBI construction council

Gregor Craig will succeed Sir James Wates in November
3 days ago

Henry Construction hires safety director

Former Murphy safey chief joins Henry Construction
3 days ago

Go-ahead for West London 460-home build to rent scheme

TfL/Grainger JV to start five-block scheme next to Southall station
4 days ago

Argent advances plan for fifth Paradise Square building

Four architects in contest to design Three Chamberlain Square and hotel
4 days ago

Mini nuclear power lifeline for Wylfa site

Rolls-Royce eyes North Wales site after Hitachi confirms £20bn nuclear power plant canned
4 days ago

Morgan Sindall set for £40m Birmingham Uni lab job

First phase of Molecular Science complex to start early next year
4 days ago

Leaders press Chancellor for targeted six-pack stimulus

Industry tables carbon reduction, cladding and job creation plan for Autumn spending review
4 days ago

Worker killed as scaffold collapses during dismantling

Contractor and director fined after fatal fall in north London
4 days ago

Vital Energi to build waste heat from power plant centre

Low-carbon energy centre to use spare heat from planned £680m energy from waste plant
4 days ago

Spring start for next Harwell science block

Builder yet to be named for Quad 2 building
4 days ago

MPs slam missed cladding remediation target

Public Accounts Committee warns it is “imperative” new 2021 deadline to replace cladding is met
4 days ago

Galliford Try suffers £60m loss

Contractor forecasts return to profit this year and targets 1.6% margin
4 days ago

Pulling-out of London market costs Redrow £35m

Making "acceptable" returns in the capital "increasingly more difficult"
5 days ago

Balfour tops August contracts league with civils wins

Value of industry civils contract wins rises above last year's pre-Covid level
5 days ago

Lendlease to cut 240 UK staff

Lendlease streamlining to see workforce cut by 15%
5 days ago

Network Rail to prototype composite station bridges

Low carbon composite bridges could be used to replace existing assets
5 days ago

Nuclear supply chain fears as £20bn Wylfa project scrapped

Firms warn Sizewell C plan now essential to protect developing industry
5 days ago

Nine win next phase of £12bn Openreach roll-out

2m more homes to be hooked up in ultrafast broadband push
5 days ago

Competition watchdog probes Interserve FM sale to Mitie

CMA investigates £271m merger to create UK's largest FM firm
5 days ago

Henry Boot puts social housing arm into liquidation

Starfish Commercial closes year after acquisition
6 days ago

Imtech cuts jobs as founder steps down

Imtech Engineering Services to axe 50 jobs in streamlining
6 days ago

Contractor services