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May construction output shows 'substantial improvement'



Monthly construction output was estimated to have grown by 1.9% in volume terms in May 2024, following a 1.1% decrease in April, according to ONS data.


According to the ONS the rise came from new work (2.7%), as well as repair and maintenance (0.8%).

Anecdotal evidence from the survey noted that warmer weather throughout the month contributed to the rise.

Eight out of nine sectors saw an increase, with the main contributor being a rise in total new housing at 2.8%, with a rise in both public and private new housing increasing — infrastructure new work also rose by 3.5%, while non-housing repair and maintenance grew by 2.1%.
In the three months to May construction output was estimated to have fallen by 0.7% due to a 0.9% decrease in new work and a 0.3% decline in repair and maintenance.

Brian Berry, CEO at the FMB gave his commentary on the latest data from the ONS: “May’s ONS figures show growth of 1.9%, a substantial improvement on the 1.1% fall seen in April.

“It is particularly pleasing to see new work up 2.7 per cent, with repair and maintenance also increasing.”

Brian went on to suggest that the new government has the opportunity the opportunity to take advantage of the “improving conditions”.

“It is encouraging that the new chancellor used her first major speech to make clear that delivering housing and planning reforms will be a priority.

“However, there are serious questions about how these initiatives will be delivered, due to the ongoing construction skills crisis — the new government must now set out a long-term plan for how the skills shortage will be addressed.”

 



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