Construction output shrinks again, says ONS

Construction output in the UK declined in April, according to latest data from the Office for National Statistics.

Monthly construction output is estimated to have decreased by 1.4% in volume terms in April, with the monthly value in level terms at £14,940 million.

The fall in monthly output came from decreases in both new work (1.9% fall), and repair and maintenance (0.8% fall). 

Anecdotal evidence from survey returns suggests effects of heavy rainfall and strong winds affected output in April.

At the sector level, seven out of the nine sectors saw a fall in April. 

The main contributors to the monthly decrease were private housing new work, and private housing repair and maintenance, which fell by 4.4% and 2.5%, respectively.

Construction output is estimated to have decreased by 2.2% in the three months to April - this came from decreases in both new work (2.8% fall), and repair and maintenance (1.4% fall). 

It is the sixth consecutive fall in the three-monthly series.

Scott Motley, head of programme, project and cost management at AECOM, said: “After an uptick in the broader economic climate, many will be hopeful that construction industry output will soon follow suit.

“Importantly, the upcoming general election will provide clarity on the nation’s future direction earlier than anticipated, bringing with it the prospect of a new infrastructure strategy and greater confidence in investment decisions in the second half of the year. 

“However, the continued high cost of doing business will still make for challenging landscape post-election until interest rates drop significantly.”