The UK construction sector experienced a nuanced performance in the second quarter of 2024, according to the latest Office for National Statistics (ONS) report. While there was a slight dip in overall output, driven primarily by a reduction in new work, the sector also saw notable areas of growth, particularly in new orders and specific sectors like private commercial work and non-housing repair and maintenance. This summary provides an in-depth look at the key data points and trends that shaped the construction landscape during this period.

Key Insights

Quarterly Output Decline

Construction output fell by 0.1% in Q2 2024 compared to Q1 2024, attributed to a 0.5% decrease in new work, despite a 0.4% rise in repair and maintenance activities.

June Growth

Monthly construction output increased by 0.5% in June 2024, supported by growth in both new work (0.9%) and repair and maintenance (0.1%).

Sector Performance

Seven out of nine sectors saw growth in June 2024, with non-housing repair and maintenance, and private commercial new work being the top contributors, growing by 3.2% and 2.1%, respectively.

New Orders Surge

There was a significant 16.5% increase in new construction orders in Q2 2024 compared to Q1 2024. The majority of this growth came from private commercial and infrastructure projects, which rose by 15.1% and 23.4%, respectively.

Price Growth

The annual rate of construction output price growth was 1.9% for the 12 months leading up to June 2024.

Impact of Weather and Elections

June’s output was influenced by varying weather conditions, with rain delaying some projects while warmer spells increased output in other areas. Additionally, the general election dampened spending, as observed by businesses in the sector.

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Despite a minor quarterly decline in overall construction output, the sector showed resilience in June 2024, with significant growth in key areas such as private commercial work and infrastructure projects. The rise in new orders and steady price growth are positive indicators for the industry, suggesting a potential rebound in the coming months, provided external factors such as weather and political uncertainty stabilise.