Construction output falls for third month running

Aaron Morby 11 months ago
Share

Construction output fell sharply in April marking the third consecutive monthly fall since a small uplift was recorded in January.

The 1.4% contraction in activity was caused by decreases in both new work (- 1.9%), and repair and maintenance (-0.8%).

According to fresh data published this morning by the Office of National Statistics, survey returns suggested heavy rainfall and strong winds dampened activity during April.

The latest figures will be a blow to the Government, which yesterday set out its Manifesto plan to boost house building with stamp duty cuts and reinstatement of help to buy for first-time buyers.

At the sector level, seven out of the nine sectors saw a fall in April. The main contributors to the monthly decrease were private housing new work, and private housing repair and maintenance, which fell by 4.4% and 2.5%, respectively.

In the three months to April, the industry has seen construction output fall 2.2%, mainly due to a 2.8% fall in new work brought on by project delays.

Clive Docwra, managing director of property and construction consultancy McBains, said: “After last month’s figures showed the construction sector still mired in technical recession, today’s figures come as a further blow for the industry.

“A close to 2% fall in new work across the board highlights the continuing caution shown by investors being reluctant to commit to new projects while so many economic uncertainties remain.

“New work in private housing in particular remains in the doldrums, seeing a fall of more than 4%.

“Many in the industry are crossing their fingers for a post-election boost, but today’s figures show that whichever party forms the next government has a job on its hands to restore confidence and encourage growth.”

Scott Motley, head of programme, project and cost management at AECOM: “After an uptick in the broader economic climate, many will be hopeful that construction industry output will soon follow suit.

“Importantly, the upcoming General Election will provide clarity on the nation’s future direction earlier than anticipated, bringing with it the prospect of a new infrastructure strategy and greater confidence in investment decisions in the second half of the year.

“However, the continued high cost of doing business will still make for challenging landscape post-election until interest rates drop significantly.”

Fraser Johns, finance director at Beard, said: “Given the poor weather conditions seen in April, it should be hardly surprising to see a drop in monthly construction output. A sixth consecutive fall in the three-month series is more troubling, however it shows the mixed bag of the industry in the current climate.

“While there are those across the country undoubtedly experiencing challenges and significant pressures, from our perspective, the south of England remains incredibly buoyant with growing confidence and demand from both clients and from regional and national frameworks helping to fill our pipeline.”

Latest news

Buyers more bullish about prospects for year ahead

Residential "resilient" but commercial work a weak spot
57 minutes ago

Council backs first Brutalist car park-to-flats scheme

Newcastle-under-Lyme multi-storey car park to be reborn as pioneering homes scheme
3 hours ago

Hinkley Point C hits peak build with 26,000 jobs

3,000 more workers to join as fit-out work ramps up
3 hours ago

Over 40 firms win Wessex Water M&E minor works deal

Broad sweep of specialists picked for AMP8 programme
3 hours ago

Spencer lands Scottish bridge hat-trick

Steelwork, gantries and bearing upgrades on Kessock, Forth and Tay crossings
18 hours ago

Winners revealed for £1.5bn decarbonisation deal

Fusion21 confirms places for 40 firms: Full list
3 hours ago

Cladding firm fined £225,000 after fatal fall

Court hears how cherry picker didn't reach all parts of repair job
4 hours ago

Early call-out for Ebbsfleet Garden City infrastructure

Bidders day to set out plan for Ebbsfleet Central commercial scheme
3 hours ago

Completed buildings caught-up in Gateway 2 chaos

Developer distraught after dealing with Building Safety Regulator
1 day ago

Aviva submits plans for 34-storey City office tower

Subject to planning work to start in autumn 2027
1 day ago

Murphy takes 40% stake in Aussie civils contractor

Firm enters Australasian market with stake in Sydney-based contractor Abergeldie
2 days ago

Moat seeks firm for £420m repairs and maintenance deal

15-year deal to upkeep 20,000 south east homes
1 day ago

Lynch takes over hotel for Sizewell plant operators

Hire giant now in the hotel business to guarantee accommodation for workers
1 day ago

Subcontractors wanted across Scotland

Latest Constructionline event in Glasgow: Register now
1 day ago

Six guilty of £2m bribery over Devon housing site deals

Corrupt building bosses and E.ON project chief and QS sentenced
6 days ago

1,650 former ISG staff launch legal claims

Redundancy Payment Service facing payout of more than £9m
6 days ago

Plans lodged for £1bn cancer research centre in Sutton

London Cancer Hub will deliver around 1m sq ft of lab and research space
5 days ago

London Met Uni seeks firm for £284m estate revamp

Contractor wanted to deliver capital works and FM
5 days ago

Delayed £2bn estate rebuild back on as Berkeley signs deal

Birmingham council development agreement paves way for 2028 Ladywood start
6 days ago

Tilbury Douglas boosts margin to 2.1% as profits double

Firm targets 3.5% margin by 2029 under new business plan
6 days ago

Subbies battle for fastest bricklayer title

Winchmore management team go back on the tools
6 days ago

Green light for revised McLaren Reading revamp

Mixed-use plans to transform Broad Street Mall site
5 days ago

Three arrested in Blu-3 and Mace bribery probe

Serious fraud office swoops over alleged £3m bribes to former Mace associates
7 days ago

Scotland’s most complex A9 dualling job heads to market

Market testing starts for £205m Pitlochry to Killiecrankie 6.4km upgrade
6 days ago

Unite signs £390m student beds JV with Manchester Met

Construction at Cambridge Halls site to start next year
6 days ago

Turkish contractor Limak to build new Luton Town stadium

Construction to start this summer on 25,000-seater venue
7 days ago

Kitchen fitter crushed to death by concrete blocks

House builder goes into liquidation before court case
6 days ago

Mears clinches £230m renewal for key Milton Keynes housing deal

Housing upkeep contractor achieves 100% renewal rate in bust rebid period
6 days ago

Murphy on board at new £32m rail station

Construction to start next year at Golborne station
7 days ago

HS2 engineers finish UK’s heaviest bridge slide early

A46 Kenilworth Bypass reopens 30 hours earlier than planned
7 days ago

Contractor services