Output stays in reverse as Travis Perkins blames ongoing housing slump for slide in trading

Construction output remained stuck in the red for the fourth month running, new official figures have said.

Output in August was down 0.2% while the ONS revised down previously release figures for June and July.

It said the 0.1% rise in July had been revised to a 0.5% fall, with June’s slump also deepening from 0.1% to 0.3%.

Over the three months to August, construction output fell 1%, marking the second consecutive decline in the rolling three-month measure.

Private housebuilding was the biggest culprit, shrinking 3.2% over the quarter period and 1.9% in August.

It added the decrease in output in August came solely from a fall in new work, which slid 0.7%, although repair and maintenance grew by 0.4%.

Jo Streeten, managing director, buildings & places at Aecom, said: “Higher financing costs and uncertainty over future demand continue to hold back client decisions, leaving too many projects struggling to move from planning to delivery.”

Meanwhile, builders merchant Travis Perkins said the slide in new build housing was the biggest reason why its revenue in the three months to the end of September was down 1.6%. “UK construction output and volumes remain subdued, most notably in new build residential, as macroeconomic uncertainty persists,” it added in a trading update this morning.

And in its latest Market Report, consultant Gleeds said worries around high inflation and interest rates continue to blight construction confidence. It added that labour shortages, especially in M&E, were also hitting jobs.

According to this morning’s ONS figures, the wider economy grew by 0.1% in August.