UK construction output dips 0.1% in Q2 ’24

UK construction output fell by 0.1 per cent in Q2 of 2024 (April to June) compared to Q1 (January to March). This decrease was entirely due to a 0.5 per cent drop in new work, while repair and maintenance activities grew by 0.4 per cent.

The decline in Q2 was largely driven by a 1.0 per cent reduction in April 2024, which anecdotal evidence suggests was caused by heavy rainfall and strong winds affecting construction activities.

Five of the nine construction sectors experienced decreases in Q2 2024, with the most significant declines being in private housing repair and maintenance, which fell by 2.6 per cent (£216 million), and public new housing, which decreased by 8.2 per cent (£112 million).

Conversely, non-housing repair and maintenance emerged as the largest positive contributor, growing by 3.0 per cent (£300 million).

Monthly data shows construction output increased by 0.5 per cent in June 2024. This rise was driven by a 0.9 per cent increase in new work and a 0.1 per cent increase in repair and maintenance.

Seven of the nine sectors reported growth in June. Notable contributors to this monthly increase included non-housing repair and maintenance, which grew by 3.2 per cent, and private commercial new work, which saw a 2.1 per cent rise.

Total new construction orders surged by 16.5 per cent (£1,771 million) in Q2 2024 compared to Q1. This increase was primarily due to substantial gains in private commercial new work (15.1 per cent, £503 million) and infrastructure new work (23.4 per cent, £389 million).

Additionally, the annual rate of construction output price growth was 1.9 per cent for the 12 months leading up to June 2024.

Attribution: The Office for National Statistics (ONS)

Subediting: M. S. Salama