Construction output in Great Britain decreased again in April, marking the third consecutive monthly decline.
- The Office of National Statistics reported a 1.4% decrease in construction output for April 2024.
- Both new work and repair and maintenance sectors experienced reductions in output, continuing a downturn since February.
- Private housing projects particularly suffered, with significant declines in new work and maintenance.
- Industry experts express concerns over economic uncertainties and investor reluctance affecting future projects.
The Office of National Statistics has revealed a 1.4% decrease in Britain’s construction output for April 2024, following declines of 0.4% in March and 1.9% in February. Anecdotal evidence points to adverse weather conditions impacting construction activities throughout April. Both new work dropped by 1.9% and repair and maintenance fell by 0.8%, reflecting the challenges faced across the sector. The total value of output was recorded at £14,940 million.
Private housing has been identified as a major contributor to the overall decline, witnessing a 4.4% drop in new work and a 2.5% decrease in repair and maintenance. The downturn in these areas underscores the wider hesitancy among investors, influenced by prevailing economic uncertainties.
Over the three months leading to April, construction output saw a cumulative reduction of 2.2%, attributing to a 2.8% fall in new work and a 1.4% decline in repair and maintenance activities. This marks the sixth consecutive three-month period of decreased output, underlining a persistent trend of contraction.
Clive Docwra, managing director of McBains, noted the sector remains in a state of technical recession. He highlighted, “A nearly 2% fall in new work illustrates the caution from investors amid economic uncertainties.” Docwra also mentioned the industry’s hope for a favourable post-election climate to stimulate new projects.
Similarly, Michael Wynne of Q New Homes remarked on the broad decline affecting seven of the nine construction subsectors. He remains cautiously optimistic, noting that while inflation is easing, high interest rates continue to challenge affordability and investment. Wynne also pointed out the potential positive impact of a post-election environment that could support house-building and improve the planning system.
While some see hope in softened materials cost inflation and potential changes in interest rates post-election, the urgency for enhancing Britain’s planning framework remains critical to address housing challenges and stagnant construction growth.
The continuous contraction in construction output highlights significant challenges for the industry, compounded by economic uncertainties and planning system inefficiencies.
