Torrential rain dampens construction output in May

Aaron Morby 4 months ago
Share

Bad weather has been blamed for a 0.8% dip in construction output after the fourth wettest May on record since 1862.

While the May output fall marks the second consecutive month of contraction, three-month trend figures still record activity 6% ahead, hovering 0.3% above the pre-pandemic level.

A fall in both new work (0.4%) and repair and maintenance (1.5%) contributed to the slip.

 

A fall in most sectors except infrastructure new work and private housing new work drove the decline although strong growth momentum in both private housing and infrastructure managed to weather the worst impacts.

Gareth Belsham, director of the national property consultancy and surveyors Naismiths, said: “Torrential rain may have dampened the official output figures for May, but there’s no doubting the heat still in the construction sector.

“With both demand and sentiment still very strong, few are worrying about the second successive monthly drop in output. April and May’s figures are no disaster, but they do look anaemic compared to the extremely rapid growth posted at the start of the year.”

Mark Robinson, group chief executive at SCAPE, warned that materials and worker shortage may also be beginning to impact the industry.

He said: “The shortage of materials and skilled workers is clearly beginning to take its toll, reducing the sector’s resilience and risking its capacity to keep pace with the growing demand created by the economic recovery.

“It’s more important than ever that we work together to prevent project budgets and timescales from spiraling and the industry’s revival from faltering.

“Sustained investment will be key if these challenges are to be overcome. Expanding the trades which are on the government’s shortage occupation list will be a strong first step to easing the pressure. But attracting and training the talent of tomorrow is ultimately the best long-term solution, ensuring that both the sector and the economy bounce back fully.”

Latest news

Covid impact plunges NG Bailey to £10m operating loss

Firm enters centenary year optimistic about the outlook with £1.2bn order book
8 hours ago

Sisk wins £68m Leeds twin resi towers

Works starts on Lattitude Purple scheme at former Monkbridge Iron and Steelworks site
7 hours ago

Plans in for major overhaul of Surrey pharma campus

New three storey glulam building at heart of campus revamp
6 hours ago

Create Construction goes into administration

£93m-turnover contractor sunk by the impact of the pandemic
14 hours ago

London 21-storey Fleet Street landmark offices approved

Former Daily Express building to be redeveloped as 660,000 sq ft offices
1 day ago

Contractors primed for fresh wave of price increases

Energy costs to drive big heavyside price increases as logistics issues persist into next year
12 hours ago

Muse wins green light for £30m Bradford office scheme

Work to start on landmark One City Park in Bradford next Spring
12 hours ago

Regional levelling-up projects – full list

£5.7bn regional transport settlements and £1.7bn Levelling Up Fund allocations
22 hours ago

Barhale wins £9m south London trunk main

4km water main to be installed between Crooms Hill and the Greenwich Peninsular
1 day ago

Chancellor channels spending boost into regions

Sunak commits to maintaining infrastructure revolution
1 day ago

Balfour Beatty Kilpatrick MD departs

Simon Lafferty rumoured to be heading to another M&E contractor
2 days ago

Castleoak was taking on staff seven days before going under

Collapsed developer and builder employed new supply chain head one week before administration
2 days ago

Henry bags £25m RC frame deal for Barratt London

Barratt plans 1,500 homes at former Nestle factory site in Hayes
2 days ago

Go-ahead for 22,000-seat Southend FC stadium

Worked hoped to start subject to final Government approval early next year
2 days ago

Costain poaches new digital chief from Microsoft

Microsoft digital business transformation chief Matthew Higham joins in December
2 days ago

O’Keefe lands £8m brace of contracts after CVA

Civils specialist winning regular work after striking deal with creditors
2 days ago

Castleoak goes under with loss of more than 100 jobs

Subcontractors seething as care homes specialist goes down
3 days ago

HS2 under fire for use of non-UK approved imported rebar

HS2 claims French fabricator called in because UK rebar firms could not fulfil order
3 days ago

Tolent boss to leave as losses hit £8.3m

Closure of Southern business two years ago continues to hit bottom line
3 days ago

New finance model paves way for Sizewell C nuclear plant

Government acts to put nuclear power station build programme back on track
2 days ago

Builders trade body wants to “deconstruct” CITB

NFB wants skills body replaced because it "cannot deliver on its core mission"
3 days ago

Domis set for Salford tower for upwardly-mobile

30-floor Clippers Quay tower rises from lower co-living studios to luxury penthouse living
3 days ago

Glencar bags 780,000 sq ft Coventry logistics park

Expanding St Albans contractor clinches big job for Bericote Properties
3 days ago

Cladding panels “dislodged” from McAlpine hotel job

Roads closed around £540m Victoria square development
4 days ago

Willmott Dixon wins £14.5m Luton hospital extension

Work starts on new hospital entrance and CT scanning department
2 days ago

Chancellor to detail £7bn spending pledge for local transport

Around £1.5bn will be new cash for Midlands and Northern metro mayors
4 days ago

Weston Homes plans £100m London flats scheme

Firm will build 254 flats at former Dylon factory in Sydenham
4 days ago

New home starts slump 27% amid labour and materials crisis

Third quarter new housing registrations show shift away from apartment living
4 days ago

Liverpool student block developer goes under

Subbies owed millions as Mount Group Student Natex goes into administration
6 days ago

£1.7bn Blue Eden project refloats Swansea tidal energy plan

Vast energy park plan for Swansea waterfront with 150 floating homes
3 days ago

Contractor services