Construction sector returns to growth, says ONS

Brighter weather in May has seen a return to growth for the British construction sector. 

Latest data from the Office for National Statistics (ONS) shows construction output grew 1.9% in volume terms during May. 

The rise signals better news, following a fall 0f 1.1% in April – revised from a revised from a fall of 1.4%.

The rise in monthly output came from increases in both new work (2.7%) and repair and maintenance (0.8%). 

Anecdotal evidence from survey returns noted warmer weather contributed to increased output in May, with the Met Office confirming in its monthly climate summary that May 2024 was the warmest on record.

At the sector level, eight out of the nine sectors saw growth in May, the main contributors to the monthly increase were a 2.8% increase in total new housing, with both private and public new housing increasing on the month, infrastructure new work, which rose by 3.5%, and non-housing repair and maintenance, which grew by 2.1% on the month.

Construction output is estimated to have fallen by 0.7% in the three months to May 2024; this came from a decrease in new work of 0.9%, and repair and maintenance, which fell by 0.3%.

Scott Motley, head of programme, project and cost management at AECOM, said the increase in output following three months of decline would give the construction industry a “much-needed boost”.

“Confidence will also be buoyed following the general election result and the clarity and stability Labour’s parliamentary majority provides for the nation’s future direction,” he added.

 “Ambitious manifesto pledges combined with action in the first few days of the administration suggest infrastructure will be a clear priority. 

“However, those ambitions will only be realised with a new level of cooperation between the government and the private sector from the outset. 

“The construction sector will need to play a key role in helping government rise to the technical challenges of rolling out large and complex projects – unlocking infrastructure’s wider economic and social benefits, including decarbonisation, while being mindful of the importance of winning public support for such schemes.”