Construction output falls for second month

Aaron Morby 1 day ago
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Construction output slipped for the second month running in May as a sharp slowdown in housing repair work outweighed modest growth in new build activity.

The Office for National Statistics estimated total construction output fell by 0.8% during the month, following a revised 0.1% decline in April. The April figure was previously reported as a 0.1% increase.

The latest fall was driven entirely by the volatile repair and maintenance sector, which dropped 2.1%. Private housing repair and maintenance was the biggest drag, tumbling 5%.

New work remained weak but edged up by 0.2%, helped by a 2.3% rise in private housing output. That gain offset smaller declines across commercial, industrial and infrastructure construction.

Despite the weak monthly performance, the broader trend remained positive.

Construction output increased by 1.6% over the three months to May, marking the third consecutive rolling three-month increase.

Both major categories contributed to the quarterly improvement, with new work rising 1.1% and repair and maintenance up 2.1%.

Jo Streeten, managing director, Buildings & Places at AECOM, said: “The fall in output highlights that economic and political uncertainty is continuing to weigh on investment decisions across the sector.

“Today’s figures reinforce our latest market forecast has been pointing to, a two-speed construction market, where long-term infrastructure continues to provide resilience while many private developments remain under pressure from financing costs and economic uncertainty.

“The government’s support for Heathrow expansion is an important example of the kind of nationally significant infrastructure investment that can strengthen UK competitiveness while creating skilled jobs and training opportunities. Maintaining momentum behind projects like these will be essential to delivering lasting economic value for any government.”

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