The construction industry plays a pivotal role in driving economic activity in the UK, reflecting both short-term fluctuations and long-term trends in the economy. This report delves into the performance of the UK construction sector in April 2024, focusing on key indicators such as monthly output, sectoral performance, quarterly trends, new orders, and price growth.

Overview

In April 2024, the UK’s construction sector experienced a notable decline in output. According to the Office of National Statistics (ONS), the construction output decreased by 1.4% in volume terms, reaching a monthly value of £14,940 million. This decrease reflects challenges across various subsectors, with both new work and repair and maintenance activities showing declines.

Key Findings

Overall Decline in Output

The total construction output in April 2024 was estimated at £14,940 million, marking a 1.4% decrease from the previous month. This decline is part of a broader downward trend affecting the construction industry.

Impact of Weather Conditions

Anecdotal evidence from survey returns indicates that adverse weather conditions, including heavy rainfall and strong winds, significantly impacted construction activities. These conditions hindered both the commencement of new projects and the progression of ongoing work.

Sectoral Performance

• New Work
  • New work experienced a substantial decline of 1.9%. The most significant reduction was observed in the private housing new work sector, which fell by 4.4%.
• Repair and Maintenance
  • Repair and maintenance activities also decreased, albeit at a lower rate of 0.8%. Private housing repair and maintenance saw a notable drop of 2.5%.
• Sectoral Breakdown
  • Out of nine sectors, seven recorded a decrease in output. The sectors with the most pronounced declines were:
    • Private Housing New Work: Decreased by 4.4%
    • Private Housing Repair and Maintenance: Decreased by 2.5%

This widespread decline highlights the pervasive challenges faced by the construction industry, affecting both residential construction and maintenance activities.

Three-Month Analysis

Over the three months leading up to April 2024, construction output decreased by 2.2%. This period marks the sixth consecutive three-month decline in the construction series.

• New Work
  • There was a 2.8% decrease in new work, reflecting ongoing challenges in initiating and progressing new construction projects.
• Repair and Maintenance
  • Repair and maintenance saw a 1.4% decrease, indicating reduced activity in maintaining and refurbishing existing structures.

The construction sector’s performance in April 2024 underscores significant challenges, driven by both adverse weather conditions and underlying sectoral issues. The declines in both new work and repair and maintenance activities highlight the need for strategies to mitigate the impacts of environmental factors and enhance sector resilience. As the industry continues to face a downward trend, stakeholders must address these challenges to stabilise and potentially reverse the current trajectory.

Recommendations

Weather Resilience Measures

• Develop and implement construction practices and materials that can withstand adverse weather conditions.
  Schedule critical construction activities during periods with historically favourable weather conditions.

Sector-Specific Interventions

• Focus on revitalising the private housing sector by offering incentives for new constructions and renovations.
• Promote public and private partnerships to boost investment in housing and infrastructure projects.

Data-Driven Decision Making

• Utilise comprehensive data analytics to predict weather patterns and plan construction activities accordingly.
• Monitor sectoral performance continuously to identify emerging trends and respond proactively.

By addressing these areas, the construction industry can better navigate current challenges and build a foundation for sustainable growth in the future.