The latest estimates from the UK Office for National Statistics indicate a modest rise in the construction sector's output in September 2024.
This increase contributes to the sector's overall growth of 0.8% in the three months leading up to September, compared with the previous three months.
In the three months to September 2024, the construction sector observed varied performance across its segments. New work saw a 2.0% increase, with infrastructure new work making the largest contribution at 2.8%.
Conversely, repair and maintenance experienced a decline of 0.6%, with private housing repair and maintenance dropping significantly by 5.8%.
Despite the mixed results in the different construction categories, the sector's 0.1% monthly output in September rose due to a 0.4% increase in repair and maintenance activities.
However, new work slightly declined by 0.2% during the same period. Notably, four out of nine sectors within the industry reported increases, with private housing repair and maintenance leading the monthly growth at 1.3%.
The construction sector's performance has played a role in the broader economic landscape, with real GDP estimated to have grown by 0.1% in the three months to September 2024.
This growth was primarily driven by the retail trade sector, excluding motor vehicles and motorcycles, along with new construction work.
Federation of Master Builders chief executive Brian Berry said: “The positive growth in the construction sector of 0.8% in the third quarter of 2024 is a welcome signal that the construction industry is starting to show signs of recovery, after what has been a difficult few years. The 2% growth in new work on Q2, is indicative of growing market confidence.
"However, the 0.6% fall in repair and maintenance shows the building industry is not out of the woods yet, and with the economy barely growing this could represent consumers being careful with their spending. New orders on housing are particularly worrying, given their significant fall over the quarter, this is despite the Government's efforts to build 1.5 million homes.
“A long-term plan is needed to tackle the ongoing skills crisis, as well as a concerted effort to diversify the housing market by supporting SME builders, if the government is serious about meeting its ambitious goals.”
