Quarterly construction output rises again but May’s monthly number heads into reverse, ONS says

Construction output in the three months to May was up by 1.6%, according to official figures.

The office for National Statistics said that both new work and repair and maintenance grew by 1.1% and 2.1%, respectively over the three month period.

It added that seven out of the nine sectors grew in the three months to May, the main positive contributor to the increase was non-housing repair and maintenance, which grew by 3%. Quarterly output to April was up by 1.3%.

But the ONS said estimated construction output in May was down 0.8% following the 0.1% fall the month before which had been revised down from an initial 0.1% increase.

The latest fall was driven entirely by the repair and maintenance sector, which dropped 2.1%. Private housing repair and maintenance fell 5%.

Jo Streeten, managing director for Buildings & Places at Aecom, said: “The fall in [monthly] output highlights that economic and political uncertainty is continuing to weigh on investment decisions across the sector.

“Today’s figures reinforce our latest market forecast has been pointing to, a two-speed construction market, where long-term infrastructure continues to provide resilience while many private developments remain under pressure from financing costs and economic uncertainty.”

In the three months to May, the economy grew by 0.7% compared to the previous three month period while monthly GDP output in May was up by 0.1%.