INDUSTRY RESPONSE TO ONS REPORT

Monthly construction output is estimated to have increased 0.4% in volume terms in September 2023. This follows two consecutive falls in monthly construction output.

The monthly all work construction output index in September 2023 saw an increase on the month, coming from an increase in repair and maintenance (2.1%), offset by a fall in new work (0.8%) Monthly all work index, chained volume measure, seasonally adjusted, Great Britain, January 2010 to September 2023

FEDERATION OF MASTER BUILDERS:

Positive growth in the construction industry of 0.4% is welcome news but masks the serious fall in housing output, says Federation of Master Builders (FMB) in response to today’s ONS Construction data for September 2023.

Brian Berry Chief Executive of the FMB said: “In what is looking like a difficult period for our industry, it is pleasing to see growth in construction output this month, which has contributed to overall gains for this quarter. Whilst both the private housing and non-housing repair and maintenance sectors are performing well, this should not distract from the fact that the uptake of new work has continued to fall this month, and presents a major long-term challenge to the overall outlook.”

Brian Berry continued: “The strong performance of repair and maintenance cannot be allowed to mask the fact that this month’s modest overall growth in construction output follows two consecutive months of falls, and that house building rates remain in decline. Action to rectify this alarming decline in new housing was a notable absence from this week’s King’s Speech and the Government needs to make this an urgent priority going into the new year.”

BEARD FINANCE DIRECTOR FRASER JOHNS:

“Following the PMI data earlier this week which showed a decline in output in October, news this morning of a 0.4% uplift in volume in September shows just how unpredictable and volatile the sector is in the current climate.   

“Although the month saw a fall in new work, when viewed in the context of the quarter, there was actually a 3.9% rise compared to the second quarter of this year.  

Johns adds: “The biggest contributors to this rise were infrastructure new orders, up 14.3%, and non-housing public new work, up 23.7%, particularly for schools and colleges.  

“September’s uplift and the marginal quarter-to-quarter growth was caused predominantly by a rise in repair and maintenance, demonstrating that the appetite or ability to commit to new building projects is still clearly dampened.”