The ONS estimates that monthly construction output increased by 0.4% in volume terms in August 2024. This follows a decrease of 0.4% in the previous month.
Statistically, this means that while output in August was higher than in July, it was still marginally below that seen in June.
August’s increase in construction output came from a 1.6% growth in new work as repair & maintenance fell by 1.0%.
At the sector level, five out of the nine sectors grew in August 2024; the main contributors to the monthly increase were private housing new work and private commercial new work, which grew by 3.4% and 2.2%, respectively.
Over the three months to August 2024 construction output is estimated to have grown by 1.0%. This came from a 1.7% increase in new work as repair & maintenance showed no growth.
Commenting on the latest ONS data Clive Docwra, managing director of property and construction consultancy McBains, said: “After July’s surprise fall in output, the construction industry will breathe a sigh of relief that August’s figures show improvement.
“Growth had stalled in five of nine work sectors in July, so 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.
“Despite current conditions remaining fragile, our clients are telling us that confidence is returning in many work sectors, helped by factors such as proposed planning reform and the cost of borrowing expected to fall.
“All eyes will now be on the budget later this month where the industry hopes the chancellor will pull a rabbit or two out of the hat to help encourage further growth.”
