Homeowners are cutting back on home improvements as the cost of living begins to bite, warns the Federation of Master Builders (FMB) in response to the latest figures published by the Office of National Statistics - ONS figures for August
Monthly construction output is estimated to have increased by 0.4% in volume terms in August 2024; this follows a decrease of 0.4% in July 2024.
The increase in monthly output came from growth in new work (1.6%) as repair and maintenance fell by 1.0%.
At the sector level, five out of the nine sectors grew in August 2024; the main contributors to the monthly increase were private housing new work and private commercial new work, which grew by 3.4% and 2.2%, respectively.
Construction output is estimated to have grown by 1.0% in the three months to August 2024; this came from an increase in new work (1.7%), while repair and maintenance showed no growth.
Brian Berry, Chief Executive of the FMB, commented: “Overall growth of 0.4% in the construction sector, albeit small, is welcome news but it masks a deeper concern about how homeowners are cutting back on home improvements as demonstrated by the 1% fall in August for repair, maintenance, and improvement work.
“Homeowners are tightening their purse strings against a backdrop of rising costs and economic uncertainty ahead of the October budget.
“The long-awaited Budget will at least provide clarity about any tax increases that might further dampen consumer spending. Given the importance of the building industry to support economic growth the Government needs to be outlining details about its election commitment to upgrade five million homes.
“This could provide a pipeline of work for many small builders as well as improving the homes of millions of families living in poorly insulated homes.”
