Construction output fell 1.8% in October 2021, reaching the largest monthly decline since April 2020 as supply chain issues continue, reports ONS
In October, new work fell 2.8% from the previous month, whilst repair and maintenance figures remain unchanged.
As shown in recent months, anecdotal evidence in October 2021 from businesses continues to suggest that product shortages caused by supply chain issues have led to subsequent price rises in raw materials such as steel, concrete, timber, and glass.
Infrastructure and new housing contribute to decline
At the sector level, the main contributors to the decline in monthly output in October 2021 were infrastructure and private new housing, which decreased 7.1% and 4.4% respectively.
These decreases were partially offset by increases in private industrial and public other new work of 8.8% and 7.0% respectively.
The level of construction output in October 2021 was 2.8%, coming to £400m below the February 2020, pre-pandemic level.
New work was 6.2% (£592m) below the February 2020 level, while repair and maintenance work was 3.9% (£193m) above Covid-19 levels.
The extent of recovery to date, since the falls at the start of the coronavirus pandemic, has been mixed at a sector level, illustrated with infrastructure performing strongly above (36.7%).
However, private commercial was still some way below (26.9%) its February 2020 level in October 2021.
In line with the monthly fall, construction output fell by 1.2% in the three months to October 2021.
This was due to a 1.5% fall in repair and maintenance and a fall of 1.0% in new work, with new housing (both public and private), public other new work, and private commercial new work all falling.
‘Industry continues to face a number of challenges’
Mark Markey, managing director of the Akela Group commented: “It’s disappointing to see construction output fall again this month as the industry continues to face a number of challenges, including the high cost of materials, supply chain issues, and the chronic shortage of skills.
“Recruiting young talent and upskilling the existing workforce with essential green skills will undoubtedly play a key role in ensuring a bright future for the sector.”
