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Construction Output Continues Downward Trend in April 2024

MONTHLY construction output is estimated to have decreased by 1.4% in volume terms in April 2024, with the monthly value in level terms at £14,940 million.

This is according to the latest Office for National Statistics (ONS) bulletin.

The fall in monthly output came from decreases in both new work (1.9% fall) and repair and maintenance (0.8% fall). Survey returns also suggested effects of heavy rainfall and strong winds affected output in April.

Downward Trend

At the sector level, seven out of the nine sectors saw a fall in April 2024. 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.

Construction output is estimated to have decreased by 2.2% in the three months to April 2024. This came from decreases in both new work (2.8% fall), and repair and maintenance (1.4% fall) and is the sixth consecutive fall in the three-monthly series.

INDUSTRY COMMENT

Worrying Trend Emerging

Brian Berry, FMB Chief Executive

Brian Berry, Chief Executive of the FMB said: “The latest ONS figures show a worrying trend emerging, with decline in construction output recorded in each of the first four months of 2024.

“While survey data collected by the ONS indicates that continued wet and windy conditions once again contributed to the struggles of construction firms, the stagnation seen across the UK economy suggests this is part of a wider problem.

“The performance of the construction industry is a key element of the UK’s overall economic performance. With the General Election fast approaching, and all of the major political parties claiming sustainable long-term growth will be a priority, it is essential that construction receives the attention it needs.

“By boosting house building rates, providing support to people looking to carry out energy efficient upgrades to their homes, and taking steps to address the current skills crisis in construction, the next government can set the UK on the road to a brighter future.”

>> Read more construction data in the news

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