Construction hangs on to growth as new orders rebound

Aaron Morby 1 day ago
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Construction output crept up again in September as a jump in new work offset another slowdown in repair and maintenance.

Latest official figures from the ONS show output rose by just 0.2% on the month, driven by a 0.7% uplift in new work but dragged back by a 0.5% fall in repair and maintenance.

It is the third sluggish output reading in a row and adds up to a stagnant 0.1% rise overall in the third quarter.

There was brighter news in new orders, which climbed nearly 10% over the quarter — helped by a rebound in private commercial and industrial projects.

Even so, the pace of growth remains subdued as investor confidence stays fragile and housing continues to act as a drag.

McBains managing director Clive Docwra said the figures offered some hope as the industry anticipates a grinding few months ahead.

He said: “Today’s figures will at least provide some degree of comfort ahead of what many expect to be a difficult winter for the construction industry.

“However, it’s still a mixed bag – while we welcome new work increasing by 0.7% in September and the private commercial sector witnessing growth over the month, performance over the last quarter as a whole remains sluggish, with new orders falling by 0.2% and private housing by a worrying 1.9%. It’s clear that underlying concerns from investors over the economy are still biting hard.

“The immediate road ahead remains challenging, and while many are expecting a lacklustre Budget later this month, the hope is that the Chancellor will make further commitments in terms of infrastructure investment and moves toward a more settled fiscal environment.

“With housebuilding in need of a boost, reforms such as abolishing stamp duty would also provide a shot in the arm for the sector.”

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