The construction industry in the UK saw a modest recovery in August 2024, according to the Office for National Statistics (ONS).
- A 0.4% increase in construction output was recorded, bouncing back from a similar decline in the previous month.
- Growth was primarily driven by a 1.6% rise in new work, offsetting a 1.0% decrease in repair and maintenance activities.
- Private housing and commercial sectors were notable contributors, experiencing increases of 3.4% and 2.2% respectively.
- Industry experts remain cautiously optimistic as the potential for economic improvement hinges on forthcoming policy changes and budget announcements.
The recent figures from the ONS have indicated a slight recovery in the UK’s construction industry with a 0.4% rise in output in August 2024. This uptick comes after a similar reduction in July, leaving output slightly lower than June’s levels. Nevertheless, this growth is predominantly attributed to a 1.6% increase in new construction work, which compensated for the 1.0% decline in repair and maintenance.
Sectoral analysis reveals that five out of nine sectors saw expansion during this period, with private housing and private commercial new work leading the way. Private housing new work surged by 3.4% while private commercial new work increased by 2.2%, underscoring a positive trend in these key areas. The three-month data leading up to August also supports this growth trajectory, with an overall 1.0% increase driven by a 1.7% rise in new work and stagnant repair and maintenance figures.
Clive Docwra, the managing director at McBains, commented on this data, emphasising the relief within the industry following July’s unexpected dip. Docwra noted, “The 3.4% increase in private housing new work and 2.2% increase in private commercial new work are encouraging signs that the economic climate, at least in the short term, is gradually improving.” He also highlighted that despite fragile current conditions, client confidence is on an upswing, bolstered by proposed planning reforms and anticipated reductions in borrowing costs.
Looking ahead, the industry is eagerly awaiting the upcoming budget announcement, which is expected to provide further clarity and potentially stimulate additional growth. Experts are hopeful that strategic decisions and government initiatives will support this emerging positive trend in the construction sector.
With prudent policies and strategic decisions, the construction sector may continue its path towards recovery and sustained growth.
