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Construction output creeps up in Q2



UK construction output creeped up in the second quarter by an estimated 1.2%, according to the Office for National Statistics (ONS).


On a monthly basis construction output is estimated to have grown by 0.3% in June, in contrast to the 0.5% fall recorded in May.

However, June’s growth is still below the 0.9% monthly increase recorded in April.

June’s construction output increase was largely led by an increase in repair and maintenance work, which was up 1.2%.

In contrast, new work during the month decreased by 0.4%.

At a sector level, five out of nine construction sectors grew in June.

One of these was private housing repair and maintenance which recorded a 3.7% increase in activity.

Total construction new orders fell by 8.3%, or £976m, in the second quarter from the preceding period.

Commenting on this update, Hampshire Trust Bank managing director of development finance Neil Leitch said “there is a long way to go” to reach pre-pandemic levels.

“Approvals on paper do not build homes,” said Neil.

“Unless the firms who do the work are financially stable and have the people they need, those permissions will just sit there.

“That’s the real risk — approvals without delivery.”



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