Construction output is estimated to have increased by 0.5% in Q4 2024 compared to the previous Quarter, solely from an increase in new work (1.2%), as repair and maintenance fell by 0.4%, the Office for National Statistics has reported.
The ONS further reported that monthly construction output is estimated to have fallen by 0.2% in volume terms in December 2024; this came solely from a fall in repair and maintenance (1.8%) as new work grew by 1.1%.
At the sector level, five out of the nine sectors fell in December 2024; the main contributors to the monthly decrease were non-housing repair and maintenance, and private housing repair and maintenance, which fell by 1.8% and 1.4%, respectively.
Total construction new orders fell by 2.4% (£231 million) in Q4 2024 compared with Q3 2024; this quarterly decrease came solely from infrastructure new work and private industrial new work, which fell by 23.5% (£496 million) and 19.7% (£197 million), respectively.
Annual construction output increased by 0.4% in 2024 compared with 2023; this is the fourth consecutive year of annual growth.
The annual rate of construction output price growth was 3.0% in the 12 months to December 2024.
Commenting on the report, Dr David Crosthwaite, chief economist at BCIS, said: “It’s good news that construction output grew by 0.5% in the last quarter of 2024, outperforming the wider economy, which is estimated to have grown by just 0.1% in the same period.
“Construction output growth was slightly better than expected given that the Christmas shutdown was included in the figures and the December numbers fell on a monthly basis. However, on an annual basis, construction output grew by just 0.4% overall through 2024 which is disappointing.
“Quarterly growth came mainly from the new work sectors, with repair and maintenance output falling back during the quarter. Private housing, public other and private industrial work were the primary drivers of growth during the quarter.
“Looking forward, new orders figures for the last quarter of 2024 were down again – by 2.4% compared with Q3 2024, and by 0.1% compared with Q4 2023 – although these falls are not as steep as we saw in the previous quarter. We have to hope that the Bank of England reducing the base rate and the government’s growth plans have a positive effect on investor confidence and demand levels in the sector going forward.”
