ONS Construction Output: March 2024

Overview of Three-Month Trends:

Construction output experienced a decrease of 0.9% in the three months leading up to January 2024. This decline was primarily driven by a fall in new work, which dropped by 4.5%. On the other hand, repair and maintenance activities increased by 4.0%.

Sector-Level Analysis:

The decline in output over the three months stemmed from decreases in infrastructure new work and private housing new work, which fell by 9.3% and 5.2%. However, there were positive contributions from non-housing repair and maintenance, and private housing repair and maintenance, which saw increases of 3.2% and 3.3%.

Monthly Output Trends:

Monthly construction output showed a positive trend, with a 1.1% increase in volume terms in January 2024. This uptick follows three consecutive monthly declines. The monthly value in levels terms reached £15,422 million in January 2024.

Breakdown by Activity:

The increase in monthly output was driven by both new work and repair and maintenance activities, which saw respective increases of 1.1% and 1.2%.

Sector-Level Performance in January 2024:

Out of the nine sectors analysed, six witnessed a rise in output in January 2024. The main contributors to this monthly increase were private new housing and non-housing repair and maintenance, which experienced growth rates of 2.6% and 1.9%.

Despite a recent decline in overall construction output over the three months, the sector exhibited signs of recovery in January 2024, with a notable increase in monthly output. While challenges persist, particularly in certain sub-sectors like infrastructure and private housing, the positive momentum in repair and maintenance activities, along with increases in new work, suggests potential for continued growth and stability in the construction industry. Ongoing monitoring and strategic interventions may be necessary to sustain this upward trajectory and address any remaining obstacles.