Construction output flat in November, ONS reports


The latest data follows a downwardly revised increase of 0.4% from 0.8% in October.

The main contributions towards the flat growth in November came from a decrease in new work (0.4% fall), offset by an increase in repair and maintenance (0.6%) on the month.

At the sector level, the main positive contributors were in infrastructure new work and non-housing repair and maintenance, which increased by 4.2% and 2.4%, respectively.

Negative contributors were in private new housing and private housing repair and maintenance, falling by 4.8% and 1.7%, respectively.

The level of construction output volume in November was 3.1% (£452m) above the pre-Covid level.

New work was 3.4% (£327m) below its February 2020 level, while repair and maintenance work was 15.5% (£778m) above it.

Meanwhile, construction output saw an increase of 0.3% in the three months to November.

The increase came solely from growth in new work (1.3%) as repair and maintenance saw a decrease (1.2% fall).

On an annual basis, construction output grew 4%, the smallest increase since June, following a downwardly revised 5.9% gain in October.

Alliance Fund chief executive Iain Crawford says: “A softening in construction output during November was always likely following what is traditionally a stronger summer period, but particularly with the addition of growing uncertainty surrounding the wider property market.”

“With both the construction of new housing and new work seeing a reduction in output, it appears as though the sector may have paused for thought more prematurely than usual, in order to fully consider the implications of the wider economic backdrop and how best to negotiate them in 2023.”

“This trend is likely to remain until the sector shifts fully through the gears this year but we don’t foresee any notable long-term decline in construction output in 2023.”

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