ONS Construction Output Report Summary - January 2025
The latest Office for National Statistics (ONS) Construction Output Report reveals a 0.4% estimated increase in UK construction output in November 2024, following an upwardly revised 0.3% decrease in October 2024. This article provides a summary of the key findings identified regarding the performance trends and sectoral challenges shaping the construction industry.
Monthly Performance Analysis
In November 2024, UK construction output showed a 0.4% increase in volume terms, reflecting a positive trend in the sector. This rise can be attributed to two key areas: new work and repair and maintenance. Specifically, new work experienced a 0.3% growth, while repair and maintenance saw a more significant rise of 0.5%.
A closer look at the sectoral level reveals that five of the nine construction sectors experienced growth during this period. The sectors contributing most to this increase were private commercial new work and non-housing repair and maintenance. Private commercial new work grew by an impressive 3.1%. Additionally, non-housing repair and maintenance saw a steady rise of 1.1%, likely reflecting ongoing demand for maintaining infrastructure outside the housing sector, including commercial and industrial properties.
Quarterly Trends
For the three months leading up to November 2024, construction output has shown a slight increase of 0.2%. This quarterly growth is attributed primarily to new work, which rose by 0.4%, indicating that construction projects are generally on the rise. On the other hand, repair and maintenance activity remained unchanged, with a flat growth rate of 0.0%. This suggests that while new projects are on the rise, the demand for repair and maintenance services has stabilised. Despite the flatline in repair and maintenance, the overall increase in construction output is encouraging, signalling a steady and gradual recovery in the sector.
The UK construction industry shows positive signs of growth, with both monthly and quarterly output increasing. New work, particularly in the private commercial sector, and non-housing repair and maintenance are key contributors to this upward trend. While repair and maintenance activities have plateaued, the overall increase in construction output signals a resilient and gradually recovering sector.
Source: Construction output in Great Britain – Office for National Statistics
