April construction output decreased by 0.4% according to the latest ONS figures, which is the first monthly decline since October 2021
The decrease in the April construction output is due to a fall in repair and maintenance work, which was a product of the March 2022 growth caused by damage experienced by storms Dudley, Eunice, and Franklin in February 2022.
The main contributors to the decline in April 2022 were private housing repair and maintenance, and private commercial new work, which decreased by 6.5% and 3.8%, respectively.
Despite the monthly fall, the level of construction output in April 2022 was 3.3% (£481 million) above the February 2020 pre-coronavirus (COVID-19) level, new work was 0.7% (£68 million) below, while repair and maintenance work was 11.0% (£549 million) above.
Despite the April construction output decrease, output increased by 2.9% in the three months to April 2022, which is the sixth consecutive growth in the three-month on three-month series.
Fall back in repair and maintenance was caused by storms Dudley, Eunice, and Franklin
April construction output decreased by 0.4%, in volume terms, to £14,936 million in April 2022 compared with March 2022. This is the first monthly decrease since October 2021 (a fall of 0.9%) following five consecutive months of growth.
In April 2022, fall back from repair and maintenance work that was carried out in March 2022 because of the storm damage is evident.
Anecdotal evidence from returns received for both our Monthly Business Survey for Construction and Allied Trades and our Business Insights and Conditions Survey (BICS) suggested some of the issues in sourcing certain construction products remained. High costs of products (such as concrete and timber), shortages of materials, particularly for smaller-sized firms, and higher fuel, are still mentioned.
Private housing repair and maintenance, and private commercial new work were the largest contributions to the monthly decrease
The decrease in private housing repair and maintenance comes after a strong 5.8% monthly increase in March 2022.
Anecdotal evidence gathered over March 2022 suggested the increase seen in private housing repair and maintenance was a result of businesses stating they saw a higher workload in March 2022. This was because of the repair work needed from the storms in February 2022.
Similarly, the fall in private commercial new work in April 2022 is partly a by-product of the strong growth seen in March 2022.
Construction output rose by 2.9% in the three months to April 2022
Construction output rose 2.9% in the three months to April 2022, which is the sixth consecutive increase in the three-month on three-month series.
Increases in both new work and repair and maintenance contributed to the growth, with eight out of the nine sectors seeing an increase.
Private housing new work and non-housing repair and maintenance were the largest contributions to the three-monthly rise, increasing by 2.5% and 5.8% respectively.
In contrast to its monthly increase in April 2022, infrastructure new work was the only sector to have seen a fall in the three months to April 2022, decreasing by 0.6%.
‘Contractors are facing a turbulent period as input costs continue to rise’
Mark Robinson, group chief executive at SCAPE, said: “A monthly decline will do little to alleviate concern regarding the impact of inflation on industry output.
“It’s clear that contractors are facing a turbulent period as input costs continue to rise. With inflation set to increase as much as 10% by the end of the year, firms should be using the peak summer months to scenario plan for further price rises.
“While the prospect of an upcoming economic recession is a reality, the industry has performed strongly for more than two years now and should be looking to maintain momentum by working with clients to build flexibility into their project specifications.”
