UK construction faced a turbulent April 2024, with output declining for the third month in succession.
- Heavy rainfall and strong winds, particularly from Storm Kathleen, led to a 1.4% drop in construction output in April.
- The North East experienced the steepest regional decline, with construction output down by 11.6%.
- Despite stagnation in the broader economy, non-residential repair, maintenance and public new work sectors showed growth.
- Industry leaders call for attention to construction as the general election approaches amidst high operational costs.
In April 2024, the UK construction sector contended with severe weather conditions, including intense rain and wind events attributed to Storm Kathleen. These adverse conditions resulted in a 1.4% reduction in construction output from March, marking the lowest level since June 2022, with total output valued at £14.94bn. Over the past three months, the sector has faced a cumulative decline of 2.2%.
The Office for National Statistics (ONS) reported that new construction work and repair and maintenance efforts both contracted, dropping by 1.9% and 0.8% respectively. Notably, only the public new work and non-residential repair and maintenance industries experienced growth in April, recording increases of 3.4% and 0.6%.
Regionally, the downturn in construction output was unavoidable, with every area reporting negative growth. The North East was especially hard-hit, revealing a significant contraction of 11.6%. According to anecdotal data from ONS surveys, the inclement weather was a primary hindrance. Supporting this, the Met Office confirmed April received 155% of its average rainfall.
Brian Berry, chief executive of the Federation of Master Builders, expressed concern over the persistent decline, indicating that the ongoing weather challenges were exacerbating an already sluggish UK economy, suggesting a broader economic stagnation. He emphasised the critical influence of the construction industry on overall economic health, particularly in light of the impending general election and the political focus on sustained economic growth.
The prospect of political change is seen as potentially advantageous for the construction industry, as noted by industry figures such as Scott Motley of Aecom, who highlighted the expected clarity in national infrastructure strategies post-election. However, he acknowledged the persisting challenges posed by elevated business costs, which could present difficulties until a decrease in interest rates is realised.
Fraser Johns of Beard remarked on the mixed conditions in the industry, acknowledging both the pressures faced in April and the emerging optimism in the southern regions of England, where confidence and demand remain robust. He predicted potential fluctuations in the market landscape but maintained a positive outlook for the coming months as momentum in construction appeared to gather pace.
April’s stormy conditions highlighted the vulnerability of UK construction to weather patterns, underscoring the need for strategic resilience as political and economic landscapes evolve.
