The construction industry experienced a significant rebound in May, attributed to favourable weather conditions, after months of decline.
- Construction output surged by 1.9% in May, surpassing the UK’s overall economic growth rate of 0.4%.
- Despite a 0.7% slowdown over the prior three months, activity showed slight year-on-year improvements, with an increase of 0.8%.
- Eight out of nine sectors reported growth, with the housing sector notably expanding by 7% in public housing and 2.1% in private housing.
- Industry experts express cautious optimism about future growth, emphasising the need for ongoing economic stability and policy clarity.
The construction industry marked a promising recovery in May, aided by favourable weather conditions that reversed a three-month downturn. Construction output increased by 1.9%, significantly outperforming the broader UK economy, which saw only a 0.4% growth, according to the Office for National Statistics (ONS).
While the sector faced a general slowdown of 0.7% in the three months leading up to May—owing to declines of 1.1% in April and 0.4% in March—the annual comparison showed a slight growth of 0.8%. This uptick has been partly attributed to the warmest May on record, aiding productivity following months of heavy rainfall.
The ONS reports that eight out of nine sectors experienced growth. The housing sector was particularly strong, reflecting a 7% rise in new public housing projects and a 2.1% increase in private housing activities. Infrastructure also experienced a boost, with a 3.5% rise in output.
Scott Motley, head of programme, project and cost management at Aecom, noted that this increase would offer the sector a ‘much-needed boost’. He highlighted that confidence would likely strengthen following the general election outcome, citing the stability provided by Labour’s parliamentary majority as a positive influence on future directions.
Fraser Johns, finance director at Beard Construction, echoed these sentiments, suggesting that settled political conditions post-election could help build momentum in the year’s latter half. Moreover, with improved borrowing conditions and potential interest rate cuts, clients might be more inclined to progress their plans.
Clive Docwra, managing director at McBains, sounded a note of caution, emphasising that despite current gains, the sector remains in need of substantial support. He urged hope for economic stability that would foster investor confidence across housing and commercial projects.
The construction industry’s recent growth highlights cautious optimism, demanding economic stability for sustained recovery.
