ONS Construction Output: October - Output Rises by 0.4% Driven by New Work Projects
This report summary, based on data from the Office for National Statistics, highlights key trends in Great Britain’s construction output for August 2024. Following a slight decline in July, construction output rebounded with a 0.4% increase in August, primarily driven by new work sectors. Despite this growth, repair and maintenance activities experienced a decrease, impacting the overall industry landscape.
Overview of Monthly Performance
In August 2024, the construction industry in Great Britain saw a notable recovery, with overall output increasing by 0.4%. This marks a reversal from July’s decline of 0.4%, indicating a short-term resurgence in the sector. The primary driver behind this increase was a significant rise in new work, which grew by 1.6%. In contrast, repair and maintenance work fell by 1.0%, highlighting a divergence in growth between these two areas.
Sector-Level Insights
The monthly output increase was reflected across various sectors, with five of the nine key construction sectors showing positive growth. Among the most significant contributors were:
- Private Housing New Work: This sector saw a strong increase of 3.4%, highlighting ongoing demand in residential construction projects.
- Private Commercial New Work: This segment experienced a 2.2% rise, indicating a robust performance in commercial construction activity.
These sectors played a pivotal role in driving the overall growth observed in August.
Quarterly Performance Trends
Looking at a broader timeframe, construction output grew by 1.0% in the three months leading up to August 2024. This sustained growth was primarily fueled by a 1.7% increase in new work, while repair and maintenance remained stagnant, showing no overall change. This underscores a reliance on new work projects for industry expansion, as repair and maintenance have yet to contribute to growth in the short term.
The construction industry in Great Britain displayed resilience in August 2024, with new work projects continuing to drive overall output growth. While the monthly uptick suggests a recovery following July’s downturn, the stagnation in repair and maintenance indicates potential areas of focus for balanced growth. Going forward, it will be essential for the industry to maintain momentum in new work while addressing the lack of growth in maintenance activities.
Source: Construction output in Great Britain – Office for National Statistics
