Construction activity rises for second month

Aaron Morby 4 weeks ago
Share

Monthly construction output grew by 0.5% in June lifted by rises in both new work (0.9%), and repair and maintenance (0.1%).

While growth in June was weaker than the 1.7% rebound seen in May, the latest figures from the Office of National Statistics show seven out of the nine construction sectors grew.

The main growth drivers for construction in June were in non-housing repair and maintenance, and private commercial new work, which grew by 3.2% and 2.1%, respectively.

But the second quarter figures for April to June were just down by 0.1% on Q1 after the big April washout caused by heavy rain.

Looking forward, there was also strong uptick in orders for the second quarter of the year.

Total construction new orders grew by 16.5%, an increase mainly coming from private commercial, and infrastructure new work, which jumped by 15% and 23% respectively.

Scott Motley, head of programme, project and cost management at AECOM: “A second consecutive month of increasing output is further proof of the sector trending in the right direction, and there’s reason to be confident that this will only continue.

“Housebuilding has long been a drag on the sector’s output, so Labour’s quick action to accelerate the delivery of new homes should bolster both confidence and work pipelines. And, combined with interest rates beginning their descent, it’s likely we’ll also see more emboldened clients firing the starting gun on new projects.

“The key challenge now will be increasing capacity, particularly addressing shortages of skilled labour, to help the industry absorb the influx of new orders.”

 

Latest news

Traditional builders dominate £800m MMC framework

20 out of 22 places on modular housing deal go to local contractors
11 mins ago

Dubai contractor sells 15% stake in Costain

ASGC sells stake for £38m after investing £25m in fund raise four years ago
17 mins ago

Amazon to invest £8bn in hyperscale datacentres

Data centre sector heats up as cloud computing giant AWS unveils big expansion plans
3 hours ago

Plan lodged for Square Mile’s fifth tallest tower

54-floor 99 Bishopsgate tower will provide 1 m sq ft of office space
1 hour ago

Morgan Sindall pulls off contracts league double

Firm swoops to top monthly and 12-month contracts league rankings
10 hours ago

Hadden Construction goes into administration

66 jobs lost at £30m turnover Perthshire contractor
20 hours ago

McAleer & Rushe wants to meet subcontractors across Scotland

Register now for Meet the Buyer event: Full list of suppliers wanted
2 hours ago

Construction output slide in July ends two-month growth spurt

Recovery stutters along as construction activity dips 0.4%
2 hours ago

Laing O’Rourke finance chief to join plastic products firm

Rowan Baker to join Essentra in November
3 hours ago

Tight cost control returns Laing O’Rourke to profit

Group margin back to 1.9% as orders swell to record £10.8bn
1 day ago

Kier to noise-proof 20,000 homes around Heathrow

Eight-year programme will involve new windows, doors, loft insulation and upgrade ceilings
1 day ago

Caddick to build £42m Schneider Electric factory

New facility at Scarborough Business Park will open next year
2 days ago

Record turnover but inflation hits profits at HG Construction

Revenue tops £400m for first time but fixed-price contracts hit bottom line
1 day ago

Speedy HS2 viaduct push cuts disruption for drivers

Balfour Beatty VINCI and Victor Buyck move 158 metre structure over roads in 11 hours: Video
1 day ago

Morris & Spottiswood expands after M&E acquisition success

Fit-out and refurb specialist lifts revenue over a quarter to £128m
1 day ago

Barratt, Lloyds and Homes England form JV for large housing schemes

Master developer JV to advance schemes of up to 10,000 homes
2 days ago

Eric Wright Construction books best profit for 12 years

Construction drives growth in more challenging year for group profitability
2 days ago

National Grid fined £3.2m after pylon accident

Worker suffers 40% burns from 33,000 volt shock
2 days ago

Civils contractor Glenevin goes into administration

All staff made redundant at £38.2m turnover broadband infrastructure specialist
2 days ago

Fusion go-ahead for 700-bed Cardiff student scheme

Building works to get underway at the start of 2025
2 days ago

Go-ahead for Salford 568 flat co-living scheme

Contractor talks underway for 42-storey residential tower
2 days ago

McAlpine healthcare MD joins BAM as Northern chief

Mark Gibson joins as Northern regional director
6 days ago

HS2 Align JV completes Britain’s longest rail bridge – video

Final deck segment sees HS2 viaduct break 137-year old record held by Tay Bridge
5 days ago

Green light for major London city fringe office retrofit

Overhaul of 30 Finsbury Square to start next Summer
5 days ago

John Lewis submits plan for £80m Reading rental flats scheme

Construction hoped to start on 215 flats scheme at the start of 2026
5 days ago

Balfour Beatty lands £27m Highlands flood defence scheme

Work to start imminently building river walls in Comrie
5 days ago

Buyers believe construction has “turned a corner”

Residential rebounds, commercial still strong but civils slows
6 days ago

Vistry unseats Barratt as Britain’s biggest house builder

Partnership homes specialist on track to build 18,000 homes this year
6 days ago

23 jobs axed as Lincolnshire contractor goes under

C G Godfrey provided civils and M&E services in Eastern England
6 days ago

Winvic first to use remote-control tower crane on site

Crane driver sits in ground floor command centre at Birmingham 33-storey tower
7 days ago

Contractor services