Construction output fell 0.8% in May 2021, with the level remaining slightly above its pre-pandemic February 2020 level, according to the latest figures from the Office for National Statistics (ONS).
Declines in both new work (0.4%) and repair and maintenance (1.5%) contributed to the monthly decline in the month, with anecdotal evidence from businesses suggesting the adverse weather conditions being a contributing factor.
The level of construction output in May 2021 was 0.3% (£43 million) above the February 2020 pre-pandemic level; while new work was 3.5% (£320 million) below the February 2020 level, repair and maintenance work was 7.5% (£363 million) above the February 2020 level.
In contrast to the monthly fall, construction output grew by 6.3% in the three months to May 2021 compared with the previous three-month period, with increases in both new work and repair and maintenance of 6.6% and 5.8% respectively.
The increase in new work in the three months to May 2021 was because of growth seen in all sectors, with the largest contributors being private housing new work and infrastructure, which grew by 7.4% and 9.7% respectively
Meanwhile, the increase in repair and maintenance in the three months to May 2021 was because of growth in non-housing and private housing repair and maintenance, which grew by 9.0% and 4.7% respectively.
Thoughts from the industry…
Government and industry must address the national shortage of building materials to reverse the decline in construction activity, warns the Federation of Master Builders (FMB).
Brian Berry, chief executive of the organisation, said: “Construction output fell in May, pointing to a fragile economic recovery for Britain’s builders. I am particularly concerned by the drop in repair, maintenance and improvement activities, given the high demand for home improvement works that builders are reporting.
“Action must be taken to address the national building materials shortage, as this is restricting builders’ ability to build back better and greener. A recent FMB survey found that 93% of builders reported material price increases in Q1 2021, which is an untenable situation. Manufacturers, merchants and builders must work together to maintain the supply of products to independent builders’ merchants, so that smaller builders can continue to improve, upgrade and green the nation’s homes.”
