Construction output in Great Britain has shown modest growth in September despite economic challenges
The volume of construction output in September 2023 showed a modest 0.4% increase in September 2023. This growth was caused primarily by a surge in repair and maintenance (up by 2.1%), while new work experienced a slight decline (a 0.8% fall).
Three of the nine main construction sectors experienced growth, notably private housing repair and maintenance, which rose by 3.0%. Quarterly construction output increased by 0.1% in Quarter 3 (July to Sept) 2023 compared to the previous quarter. The increase was driven by repair and maintenance (0.7%), while new work decreased by 0.3%.
Total construction new orders rose by 3.9% (£393m) in Quarter 3 2023 compared to the previous quarter. The upturn was primarily due to increases in public other new orders and infrastructure new orders, which increased by 23.7% (£265m) and 14.3% (£204m), respectively.
The annual rate of construction output price growth was 3.9% from 12 months to September 2023, which marks a slowdown from the record annual price growth in May 2022 (10.4%).
Anecdotal evidence suggests that above-average temperatures might have positively impacted output, corroborated by the Met Office confirming September 2023 as one of England and Wales’s hottest on record.
“News this morning of a 0.4% uplift in volume in September shows just how unpredictable and volatile the sector is in the current climate. Although the month saw a fall in new work when viewed in the context of the quarter, there was a 3.9% rise compared to Q2 2023,” said Fraser Johns, finance director at Beard, commenting on the latest ONS figures.
“News of an increase in new housing orders will certainly be encouraging for those contractors reliant on the housing market, although the sector still faces real challenges in a sustained higher interest environment,” he concluded.
