Growth in construction output offers hope for recovery, says FMB

New figures from the ONS Construction Output data for May 2024 showing a 1.9% increase in construction output, offers hope for a longer term recovery, says Federation of Master Builders (FMB).

The increase in monthly output came from increases in both new work (2.7%), and repair and maintenance (0.8%); anecdotal evidence from survey returns noted that warmer weather contributed to increased output in May, with the Met Office confirming in their Monthly climate summary that May 2024 was the warmest on record.

At the sector level, eight out of the nine sectors saw growth in May 2024, the main contributors to the monthly increase were a 2.8% increase in total new housing, with both private and public new housing increasing on the month, infrastructure new work, which rose by 3.5%, and non-housing repair and maintenance, which grew by 2.1% on the month.

Construction output is estimated to have fallen by 0.7% in the three months to May 2024; this came from a decrease in new work of 0.9%, and repair and maintenance, which fell by 0.3%.

Brian Berry, Chief Executive of the FMB, commented: “May’s ONS figures show growth of 1.9 per cent, a substantial improvement on the 1.1 per cent fall seen in April. It is particularly pleasing to see new work up 2.7 per cent, with repair and maintenance also increasing.

“Data from the end of 2023 had offered hope of improving longer-term conditions, but poor weather in the earlier months of 2024 has seen continued decline. Construction is a key pillar of the overall UK economy, and so this offers wider cause for optimism.

“Following the General Election, the new Government has an opportunity to capitalise on improving conditions to deliver real change for the industry. It is encouraging that the new Chancellor used her first major speech to make clear that delivering housing and planning reforms will be a priority. However, there are serious questions about how these initiatives will be delivered, due to the ongoing construction skills crisis.

“The new Government must now set out a long-term plan for how the skills shortage will be addressed.”