Office work drives 0.4% uptick in construction output

Aaron Morby 7 months ago
Share

After a few bruising months, construction has jumped into pole position as the best performing sector of the economy.

Monthly construction output grew by 0.4% in volume terms in November after sliding 0.3% in the prior month.

The main contributors to the monthly increase were private commercial new work and non-housing repair and maintenance, which grew by 3.1% and 1.1%, respectively.

These sectors drove rises in both new work (0.3%) and repair and maintenance (0.5%).

But trend figures show construction growth still remains fragile only increasing by 0.2% in the three months to November. This came solely from an increase in new work (0.4%), as repair and maintenance flatlined over the period.

Gareth Belsham, director of Bloom Building Consultancy said: ““Output across the industry rose by 0.4% in November, four times faster than the UK economy as a whole.

“But for all the surface sheen, the official data is far from a clean bill of health. Fortunes within the construction industry are diverging rapidly.

“Private sector house builders built 1.2% less in November than they did in October, and new home construction as a whole is stuck in reverse.

“On the other side of the coin, commercial projects are booming on the back of rising demand for office space as employers seek to get more of their staff back into offices full time.

“New commercial sector construction surged by 3.1% on the month, and on the front line we’re seeing many commercial property developers pressing the button on previously paused investment plans, as well as an increase in the number of commercial property landlords investing in repair and refurbishment to generate extra value from their existing buildings.”

Latest news

Civils winners revealed for £12bn National Grid high voltage work

Contractor wins complete £59bn investment programme
10 hours ago

United Living quits new-build housing as costs mount

£136m-turnover housing arm to wind down as focus shifts to core infrastructure
13 hours ago

Fight looms for £3bn West Midlands building framework

Galliford Try, Morgan Sindall and others face fight to keep CWM seats
14 hours ago

Industry anger over sudden CITB funding changes

Smaller contractors lose funding route worth £10,000 a year
14 hours ago

Plans in to transform former GSK London HQ with 2,300 homes

Landmark 13-acre scheme set to transform Brentford Great West Road campus
13 hours ago

Watch Murphy near completion of major new rail bridge

Latest video reveals progress on Greek Street bridge during 21-day train suspension
13 hours ago

Mount Anvil’s in-house builder drives results in testing market

Group development pipeline holds steady at 3,384 homes despite dip in profit
15 hours ago

Costain margin heads for 4.5% after half-year profit rise

Roads and HS2 rephasing hit transport revenues but £5.6bn forward book to support growth
2 days ago

Hinkley contractors face prosecution over rebar mesh fall

Bouygues and Laing O'Rourke face action brought by the Office for Nuclear Regulation
2 days ago

Farrans to build new £59m Paisley bridge

Work to start soon on transport project for Renfrewshire Council
2 days ago

Crown Estate hires Olympics village veteran to lead delivery push

John Nicholson to oversee £16bn portfolio’s major UK development pipeline.
2 days ago

Henry Boot gets green light for 2,500 new homes

Hallam Land division sees signs planning system is speeding-up
2 days ago

Wates inks £100m deal on first new-design prison houseblocks

HMP Onley expansion leads roll-out of new standardised design
3 days ago

£122m deal to unlock Newcastle’s last brownfield site

Land remediation funding paves way for 2,500-home Forth Yards neighbourhood
3 days ago

McLaren lands Heathrow logistics deal

1.6 hectare airport site to be transformed into modern warehouses
3 days ago

McAlpine veteran to lead T&T’s project management drive

Former Olympic Stadium lead Mike O’Donnell takes lead role with focus on major capital project delivery
3 days ago

IES snaps up Nexus Power out of administration

Utilities group strengthens expertise in 400kV jointing and offshore markets
3 days ago

Thames Water tenders £120m water main rehab deal

Company seeks 2–5 contractors for London and South East renewal works
3 days ago

Lower Thames Crossing to lead green planning reforms

New system to avoid another £100m HS2 bat tunnel
3 days ago

Mace lands latest 30-storey City of London tower

85 Gracechurch Street near Leadenhall Market to be transformed
4 days ago

Vinci gets go-ahead for £250m Stockport 8 scheme

Contractor to start first phase of 435 net zero homes next year
4 days ago

£80m bid race to convert Oxford Debenhams into labs

Crown Estate advance plan to convert former six storey department store
4 days ago

Bennett steps-in to finish Guinness Covent Garden brewery

Original fit-out contractor Beck Interiors fell into administration
4 days ago

Work-to-rule set to hit Sellafield clean-up

Action by 1,500 construction workers across 34 contractors
4 days ago

Aureos breaks ground on £45m Howden Relief Road

Yorkshire road will pave way for 2,000-home scheme
4 days ago

Oxford United win green light for £150m all-electric stadium

Planners back 16,000-seat Kidlington ground with hotel, plaza and community hub
7 days ago

Demolition record as eight cooling towers come down

Watch Brown & Mason set record at Cottam Power Station
1 week ago

Hitachi Energy named for EGL3 converter station deal

Firm to build major HVDC converter stations in Aberdeenshire and West Norfolk
7 days ago

PAS NW secures landmark £20m civils deal in Lancashire

Groundworks firm wins infrastructure for 429-home Wain Homes scheme
7 days ago

Subcontractors wanted for jobs across the South West

Register now for latest Constructionline event in Bristol
7 days ago