As brighter weather graced May, the British construction sector witnessed a noteworthy resurgence.
- Great Britain’s construction output grew by 1.9% in May, reversing April’s decline.
- The growth was driven by increases in new work and maintenance across various sectors.
- Despite strong May figures, the overall three-month output fell by 0.7%.
- Industry leaders stress the need for economic stability and improved investor confidence.
The British construction sector experienced a significant upturn in May, with the Office for National Statistics reporting a 1.9% increase in output by volume. This positive trend marks a reversal from April’s contraction, which was revised from a 1.4% to a 1.1% decline. The May growth was fuelled by a robust 2.7% rise in new work and a 0.8% boost in repair and maintenance activities.
Within the sector, eight out of nine sub-sectors reported growth. Notable contributions came from a 2.8% increase in total new housing, encompassing both public and private projects. Infrastructure projects added to the upward trajectory with a 3.5% growth in new work. Additionally, non-housing repair and maintenance activities witnessed a rise of 2.1%, showcasing a broad-based recovery.
However, despite the promising figures for May, the broader picture over the three months to May 2024 reveals a slight decline of 0.7% in construction output. This drop results from a 0.9% decrease in new work and a 0.3% fall in repair and maintenance activities, indicating underlying vulnerabilities within the sector.
Clive Docwra, Managing Director of McBains, highlighted the unexpected positive performance, stating that this growth across most sectors is encouraging but cautioned against interpreting it as an assured recovery. Mr Docwra emphasised the necessity of economic stability and reinforced investor confidence, particularly in both housing and commercial projects, to sustain growth.
Finance Director Fraser Johns of Beard underscored the resilience of firms within UK construction despite the volatile environment, pointing out the sector’s robust performance in May as a positive indicator. Mr Johns conveyed optimism about the future, particularly with potentially improved borrowing conditions and a settled political landscape, which could foster greater momentum in the industry.
In conclusion, while May’s growth provides optimism, sustained recovery will depend on economic stability and continued investor confidence.
