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Published: 13/05/2024
The Office for National Statistics (ONS) publishes monthly estimates of the amount of construction output chargeable to customers for building and civil engineering work in Great Britain, split by sector and type of work.
Construction output down by 0.4% in March
Construction output decreased by 0.4% in March 2024 compared with the previous month, according to the latest ONS data. New work output was down by 0.7%, while repair and maintenance (R&M) work decreased by 0.1%.
On an annual basis, new work output in March 2024 was down by 8.5% on March 2023. R&M output was up by 7.3% on the same period.
In new work, there were annual decreases in all sectors, with both private housing and private industrial showing at least a 10% fall in output. The largest increase in annual output was in private housing R&M.
| Sector | % change March 2024 compared with | |
| February 2024 | March 2023 | |
| New work | ||
| Public housing | -4.9 | -4.9 |
| Private housing | +3.5 | -10.6 |
| Infrastructure | -3.6 | -8.8 |
| Public other | -5.4 | -7.7 |
| Private industrial | -1.2 | -13.2 |
| Private commercial | +0.1 | -4.5 |
| All new work | -0.7 | -8.5 |
| Repair and maintenance | ||
| Public housing | +0.6 | +4.1 |
| Private housing | +2.4 | +10.0 |
| Non-housing | -2.5 | +5.6 |
| All R&M | -0.1 | +7.3 |
| All work | -0.4 | -2.2 |
Source: ONS – Construction output in Great Britain, volume, seasonally adjusted, by sector, Table 2a
Source: ONS – Construction output in Great Britain, volume, seasonally adjusted, by sector, Table 2a
The output for March completes the data for 1Q2024. R&M has shown growth, but not enough to counteract the fall in new work, with overall construction output down by 0.9% on the previous quarter, and down by 0.7% on 1Q2023.
On a quarter-by-quarter basis private new housing output showed the only positive growth, but was down by 13.7% when compared to the same period in 2023.
| Sector | % change 1Q2024 compared with | |
| 4Q2023 | 1Q2023 | |
| New work | ||
| Public housing | -1.2 | +2.6 |
| Private housing | +1.3 | -13.7 |
| Infrastructure | -2.2 | -4.9 |
| Public other | -2.5 | +3.2 |
| Private industrial | -3.2 | -12.6 |
| Private commercial | -5.3 | -4.4 |
| All new work | -1.8 | -7.3 |
| Repair and maintenance | ||
| Public housing | -0.2 | +4.8 |
| Private housing | +4.9 | +12.2 |
| Non-housing | -3.3 | +7.7 |
| All R&M | +0.3 | +9.2 |
| All work | -0.9 | -0.7 |
Source: ONS – Construction output in Great Britain, volume, seasonally adjusted, by sector, Table 2a
ONS pointed to the weather in March having a mixed effect on output. The Met Office said the month was unsettled, wet and dull, and saw cooler weather give way to warmer weather.
News that GPD in 1Q2024 was up by 0.6% on the previous quarter signalled the end of a short-lived recession, but construction is, so far, still showing signs of contraction.
Dr David Crosthwaite, Chief Economist at BCIS, said: ‘While the latest set of output data from the ONS is broadly positive for the economy as a whole, there are alarm bells ringing for the construction sector with yet another quarter of decline evident.
‘At the subsector level, much of the decline was led by falls in both industrial and commercial construction output, which makes the Bank of England’s decision to keep the base rate on hold even more puzzling. The cost of borrowing plays a key role in both residential and commercial construction. Therefore, as long as rates remain relatively high, we don’t expect new work output to recover any time soon.’
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