ONS Construction Output: November 2023
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 July-September 2023 and contracts awarded for new construction work in Great Britain.
In September 2023, the monthly construction output in the United Kingdom witnessed a modest increase of 0.4% in volume terms. This growth was primarily driven by a 2.1% increase in repair and maintenance activities, partially offset by a 0.8% decrease in new construction work.
At the sector level, three out of nine sectors experienced a rise in September 2023. The notable contributor to this monthly increase was private housing repair and maintenance, which saw a substantial 3.0% growth.
Quarterly construction output showed a slight uptick of 0.1% in Quarter 3 (July to Sept) 2023 compared to the previous quarter (Apr to June) 2023. This increase was attributed to growth in September 2023 after two months of declines. The quarterly growth was primarily fueled by a 0.7% increase in repair and maintenance, while new work experienced a 0.3% decrease.
Total construction new orders exhibited a positive trend, increasing by 3.9% (£393 million) in Quarter 3 2023 compared to Quarter 2 2023. The rise was mainly driven by significant growth in public other new orders (23.7%, £265 million) and infrastructure new orders (14.3%, £204 million).
On an annual basis, the rate of construction output price growth was recorded at 3.9% in the 12 months leading to September 2023. This indicates a slowdown from the record annual price growth observed in May 2022, which stood at 10.4%.
In summary, the construction industry demonstrated overall positive momentum in September 2023, with increases in monthly output and new orders. While the quarterly performance showed a modest uptick, the annual construction output price growth rate has moderated compared to the peak observed in May 2022. These trends suggest a nuanced but generally favorable landscape for the construction sector in the current economic context.
