June jump in construction output ends three month decline

Monthly construction output increased 1.6% in June after three consecutive falls in activity.

New work led the recovery rising by 2%, with repair and maintenance showing weaker growth of 1.1%.

Anecdotal evidence received from monthly business returns suggested the warm weather helped to increase output across sectors.

Infrastructure new work and non-housing repair and maintenance drove the monthly improvement, up 4.7%  and 3.4%, respectively.

The uptick in June also salvaged the quarterly performance for April to June, which edged up by 0.3%.

The quarterly growth came solely from an increase in repair and maintenance (0.9%), as new work saw a decrease of 0.1%.

Apr-June sector performance

Of the nine sectors, five saw increases in Q2 , with the largest contributors being infrastructure new work, and non-housing repair and maintenance. These sectors increased 6.1% (£433m) and 2.7% (£246m), respectively.

The largest negative contributor was private new housing, which fell 3.3% (£324 m.

Mike Hedges, director at contractor Beard said: “A rise in output, driven by an increase in both new work and repair and maintenance is positive news for the industry to wake up to, and certainly mirrors what we’re seeing on the ground at Beard.

“A strong June meant quarterly output increased in Q2, which highlights the positive momentum that seems to be building for the second half of the year.

“We’ve seen firsthand this consistent trend of clients looking to improve and repair, rather than replace.

“For some, this may reflect the tougher borrowing conditions and access to credit that is preventing them from committing to new construction projects. However, we’re seeing greater emphasis being placed on maximising the value of the assets they already have, as well reducing both waste and the loss of embodied carbon.”


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