According to the ONS, monthly construction output was down by 0.5% after September’s 0.4% bump
In the three months to October 2023, construction output saw a decrease of 0.3%, reportedly purely from a decrease in new work (by 2.0%), as repair and maintenance increased by 2.2%.
Monthly output saw a similar decline in new work(by 1.7%), marginally bolstered by repair and maintenance (up 1.3%).
Storms were cited as a reason for the delay in new works
Heavy rainfall and strong winds were cited by many respondents for the delay in planned work.
Monthly construction output is estimated to have decreased 0.5% in volume terms in October 2023, with the monthly value in level terms sitting at £15,485m.
The decrease in monthly output came solely from a decrease in new work (1.7% fall), partially offset by an increase in repair and maintenance (1.3%) on the month.
At the sector level, three out of the nine sectors saw a fall in October 2023, with the main contributors to the monthly decrease seen in private new housing and private commercial new work, which decreased 5.2% and 1.2%, respectively.
Market agility will be key to boosting construction output in 2024
Fraser Johns, finance director at Beard Construction, said: “While wet and stormy conditions will certainly be a contributing factor to October’s drop in output, it’s the potential storm clouds brewing in the wider economy which is having the biggest impact on both confidence and demand.
“There are positive indicators – inflation coming down, a hold on interest rates and the availability and pricing of supplies. However, borrowing conditions still remain particularly tough, as evidenced by the continued slowdown in the housebuilding sector and the ability of clients to pull the trigger on new projects.
“As new work dips for the month and in the three-month picture, it is not a surprise to see a rise in repair and maintenance. While this can reflect the uncertain climate we find ourselves in, it is also a sign of clients actively choosing to maximise the value of existing building stock. It is also true that finance favours green schemes for lending.
“Even in uncertain times, we are also making sure we respond to opportunities across the south and south west and we’re even expanding our footprint to meet demand with a new south coast office in the new year. There’s no question that agility will remain a key trait of successful firms in 2024, responding to the most buoyant sectors and areas of the market.”
