Construction resilient as economy slips toward recession

Aaron Morby 3 weeks ago
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Construction activity continued to grow in September despite strong headwinds in the wider economy.

Output rose 0.4% in September, marking the third consecutive month of modest expansion.

The rise was driven by an increases seen in both new work (0.6%) and repair and maintenance (0.2%) on the month.

The news was also good for orders, which were up 6.4% in the third quarter with growth mainly from private commercial new orders, which rose 28% (£832m).

Clive Docwra, managing director of property and construction consultancy McBains, said: “At a time when the economy is falling into recession, the construction sector continues to demonstrate resilience in the face of economic challenges with this increase in output, albeit moderate.

“Order books currently remain strong in many work sectors, and the strong increase in new orders in private commercial work is a sign that confidence is still in evidence.

“However, given that the longest recession since records began is forecasted, it is inevitable the industry faces a rocky road ahead.”

Third quarter on second quarter sector growth in output


Mark Robinson, group chief executive at procurement body SCAPE, said:  “The construction sector continues to buck wider market trends, with September’s growth in output impressive during a month of economic uncertainty.

“Despite this, industry leaders are well aware of the challenges they face as we enter the winter period, with soaring inflation, labour shortages and falling rates of new orders still a cause for concern.

“The Chancellor’s Autumn Statement next week will undoubtedly be a point of focus for the sector.

“Investment in community-led infrastructure will be more important than ever over the next few months, so commissioning local authorities will need to work closely with their delivery teams to minimise the impact any public spending cuts will have on their new and existing projects.”

 

 

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