Construction output has seen a decrease of 0.3% in the three months to October 2023, solely from a decrease in new work (2.0% fall), as repair and maintenance increased by 2.2%.
The latest report from the Office for National Statistics also found that monthly construction output is estimated to have decreased 0.5% in volume terms in October 2023. This follows an increase of 0.4% in September 2023.
The decrease in monthly output came solely from a decrease in new work (1.7% fall) but was partially offset by an increase in repair and maintenance (1.3%) on the month.
At the sector level, three out of the nine sectors saw a fall in October 2023, with the main contributors to the monthly decrease seen in private new housing and private commercial new work, which decreased 5.2% and 1.2%, respectively.
However, anecdotal evidence suggested that heavy rainfall and strong winds led to delays in planned work in October 2023. A high number of comments from businesses noted the negative effect of storms specifically.
Commenting on the report, Terry Woodley, managing director of development finance at Shawbrook, said: “Persistent inflation and supply chain problems are likely behind these modest figures. It’s been a tough year for developers, with labour costs putting pressure on projects, and a significant 36% of developers grappling with the escalating prices of materials, according to Shawbrook’s research.
“We’re optimistic that the government’s efforts to streamline the planning system and ease some of its burdens will boost developers’ prospects for 2024.”
