'Momentum in the UK construction sector stalled' in October through repair and maintenance decline



UK monthly construction output declined by 0.4% in October, according the latest release from the ONS.


The output fall follows on the back of a 0.1% rise in September of this year.

According to the ONS the decline came solely from a fall in repair and maintenance (1.3%), while new work grew by 0.2%, while on a sector level four of the nine sectors declined, mainly due to a 3.8% decrease in private housing repair and maintenance.

Despite the monthly decline, in the three months leading to October 2024, construction output increased by 0.4%, solely from an increase in new work (1.7%), as repair and maintenance fell by 1.2%.

Commenting on October’s output decline, Damien Wynne, co-founder of housebuilder, Q New Homes, said: “Momentum in the UK construction sector stalled in October, despite an increase in new work orders.

“Projects are being reassessed to see what is truly necessary and some clients may be shelving plans to repair and restore existing infrastructure.

“This dip in output follows successive months of growth, but the winter period typically sees activity slow as projects aim to wrap up before Christmas.

“High costs continue to constrain firms, especially firms looking to build with a high-quality finish and sustainability in mind.

“This is limiting their ability to fully leverage the recovery. The upcoming increase to employer national insurance contributions, for instance, could strain construction firms’ finances, restricting investments in projects and innovation.

“Smaller developers, already burdened by high material and labour costs, may face significant challenges staying competitive.”

Despite this, Damien also said there was “light at the end of the tunnel” with the government’s £5bn investment, which could see new work increase at a faster rate and could foster opportunities and support sustainable housing initiatives.



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