Daily Newsletter

16 August 2023

Daily Newsletter

16 August 2023

ONS reports monthly construction output increase of 1.6% in June

The sudden growth was driven by an increase in new work and repair and maintenance in the country.

August 14 2023

The UK Office for National Statistics (ONS) has reported that the monthly construction output rose in the country has risen by 1.6% in June after three consecutive monthly falls this year.

The growth represents an increase of £249m ($314m) in monetary terms compared with the previous month.

The ONS noted that construction output was at its highest since records began in January 2010. The result was driven by gains in both new work (2%) and repair and maintenance (1.1%).

Six of the nine sectors rose in June, with infrastructure new work and non-housing repair and maintenance contributing the most to the monthly gain, increased by 4.7% and 3.4%, respectively.

Quarterly construction production grew 0.3% in the second quarter (Q2) period of the year when compared to the first quarter.

This growth was only due to an increase in repair and maintenance of 0.9%, as new work saw a decrease of 0.1%.

The data also revealed that five of the nine reviewed sectors saw increases in Q2 2023.

Private new housing was the largest negative contributor at 3.3%, or £324 million.

In Q2, total construction new orders saw its third consecutive fall at 7.1% to £786m. Since Q4 2020, Q2 2023 recorded its lowest-ever level.

This quarterly decline was mostly due to a drop in public other new orders and infrastructure new orders at 32.9% (£576m) and 26.5% (£519m), respectively.

AI adoption in the construction industry is gaining traction and will continue to grow over the coming years

The construction industry is at a disadvantage when considering AI adoption as it is a difficult industry to digitalize. The vast and complex data sets needed for building information management (BIM) have been historically difficult to process. However, this is becoming possible due to developments in chips and cloud computing. AI applications in the construction industry can facilitate planning, design, modeling, safety, site monitoring and maintenance, and emissions tracking. The increased interest in generative AI has also been felt in the construction industry.

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