ONS Construction Output Report Summary - November 2024
This summary highlights key findings from the Office for National Statistics (ONS) report on construction trends in Great Britain for September 2024, including new orders and the Construction Output Price Indices (OPIs) for Quarter 3 (July to September) 2024.
Quarterly Construction Output Growth in Q3 2024
Construction output increased by 0.8% in Quarter 3 (July to September) 2024 compared to Quarter 2 (April to June) 2024. This growth was driven solely by a 2.0% rise in new work, which offset a 0.6% decline in repair and maintenance activities. The positive trend in new work underscores its role as a key driver of the industry’s quarterly performance.
Monthly Construction Performance – September 2024
In September 2024, construction output grew slightly by 0.1% in volume terms. This modest growth came entirely from a 0.4% rise in repair and maintenance activities, which counteracted a 0.2% decline in new work. Among the sectors, private housing repair and maintenance stood out as a strong performer, recording a 1.3% increase during the month.
Sharp Decline in New Orders for Q3 2024
Despite the overall growth in output, the construction sector faced significant challenges in new orders during Quarter 3. Total construction new orders plummeted by 22.0% (£2,722 million) compared to Quarter 2. Private new housing experienced the steepest decline, falling by 31.3% (£861 million). Similarly, private commercial new work dropped by 20.8% (£786 million), contributing heavily to the overall contraction.
Annual Construction Output Price Growth
The annual rate of construction output price growth slowed to 2.0% in the 12 months to September 2024. This indicates a deceleration in inflationary pressures, offering some relief to the industry amid broader economic challenges.
Sector-Level Insights for September 2024
Four out of nine construction sectors recorded growth in September 2024. Private housing repair and maintenance was the leading contributor to the sector’s monthly performance, with a robust 1.3% increase. This demonstrates resilience in specific areas of the construction industry, even as other sectors grappled with declining activity.
The ONS data reveals a mixed performance for the construction industry in Great Britain during Q3 2024. While the sector achieved modest growth in output, driven by increases in new work and repair activities, it struggled with a sharp 22% decline in new orders. Addressing these declines, particularly in private housing and commercial projects, will be critical to ensure the sector’s long-term stability and growth.
Source: Construction output in Great Britain – Office for National Statistics
