ONS Construction Output: February 2024
This Construction Output provides an overview of the latest statistics released by the Office for National Statistics (ONS). The data used in this report is based on short-term measures of output by the construction industry in the last quarter of 2023 (Oct-Dec).
Overview
Quarterly construction output witnessed a decrease of 1.3% in Quarter 4 (Oct to Dec) 2023 compared to Quarter 3 (July to Sept) 2023. This decline was solely attributed to a 5.0% fall in new work, while repair and maintenance increased by 4.0%.
Monthly Analysis
Monthly construction output in December 2023 is estimated to have decreased by 0.5% in volume terms. This reduction stemmed from a 1.1% fall in new work, despite a 0.4% increase in repair and maintenance.
Sector-Level Insights
In December 2023, three out of nine sectors experienced a decline. Infrastructure new work and private housing repair and maintenance were the main contributors to the monthly decrease, with decreases of 6.4% and 1.1%, respectively.
Annual Performance
Annual construction output showed a positive trend, increasing by 2.0% in 2023 compared to 2022. This marks the third consecutive year of annual growth.
New Orders
Total construction new orders experienced a significant decrease of 13.1% (£1,361 million) in Quarter 4 2023 compared to Quarter 3 2023. The decline was primarily observed in the private commercial and industrial sectors, which decreased by 18.1% (£542 million) and 27.6% (£320 million), respectively.
Price Growth
The annual rate of construction output price growth was 3.1% in the 12 months to December 2023. This indicates a slowdown from the record annual price growth witnessed in May 2022 and June 2022 (10.7%).
In Q4 2023, construction output fell by 1.3%, mainly due to a drop in new work despite a rise in repair and maintenance. December 2023 saw a 0.5% decrease in output, driven by a decline in new work. Annual construction output grew by 2.0% in 2023, marking three years of consecutive growth. However, new orders plummeted by 13.1% in Q4, notably in private commercial and industrial sectors. Price growth also slowed to 3.1% annually.
