UK Construction Output Falls in July 2024 Following June Growth
The latest data from the Office for National Statistics (ONS) reveals a slight decline in the UK construction industry in July 2024, following a modest increase the previous month. Below is a detailed breakdown of the performance in the sector.
Monthly Construction Output Decline
In July 2024, construction output in Great Britain saw a 0.4% decline in volume terms, a notable contrast to the 0.5% increase recorded in June. This decrease was driven by downturns in both key segments of the industry: new construction work fell by 0.2%, while repair and maintenance activity dropped by 0.7%.
Sector-Specific Performance
Out of the nine construction sectors analysed, five reported a decline in output in July. The most significant contributors to the overall monthly reduction were:
- Private Commercial New Work: This sector experienced a sharp 2.4% decline, reflecting a slowdown in commercial property construction.
- Private Housing Repair and Maintenance: Output in this segment dropped by 1.7%, indicating reduced activity in home renovations and repairs.
Three-Month Performance: Growth Continues
Despite the monthly decline, the broader picture for the industry remains positive. Construction output for the three months leading up to July 2024 increased by 1.2%. This growth was bolstered by increases in both new work, which rose by 1.6%, and repair and maintenance activities, which increased by 0.8%.
This quarterly improvement can be largely attributed to strong performances in May (1.7% growth) and June (0.5% growth), helping to offset the July downturn. These gains suggest resilience within the sector, even as certain areas, particularly private commercial work and housing repairs, faced challenges.
While July 2024 showed a temporary setback in construction output, the quarterly figures reflect ongoing growth in the sector. Although some sectors, such as private commercial and housing repair and maintenance, saw notable decreases, the overall trend suggests stability and gradual recovery in the UK’s construction industry.
Construction output in Great Britain – Office for National Statistics
