Kerry London News

Construction growth slows for the first time in five months

Wednesday 22nd June
Construction growth slows for the first time in five months

Neon Mavromatis, Managing Director, Construction, summarises the latest data from The Office of National Statistics (ONS) regarding monthly construction growth. 

Construction output has fallen after five consecutive months of growth, figures from the Office for National Statistics (ONS) reveal. Monthly construction output decreased by 0.4% in volume terms in April 2022; this is the first monthly decline seen since October 2021. The volume of work in the private housing repair and maintenance sector and private commercial new work decreased during April and was only slightly offset by a rise in new work (0.9%).

Neon Mavromatis, Managing Director, Construction, said “While these figures undoubtedly illustrate the economy’s negative impact on the construction industry, it’s also clear that the February storms have affected this month’s figures. Storm damage repairs caused a temporary spike in the volume of work during March, so this dip in repair work during April is unsurprising.

“Encouragingly, construction growth remains higher than pre-pandemic levels, showing the industry’s resilience despite the difficult economic climate. This monthly decrease in April 2022 is coming off last month’s record growth of £14,994 million, which is the highest since monthly records began in January 2010.”

Infrastructure projects continue to bolster the industry  

Since the fall at the start of the coronavirus pandemic, growth is mixed at a sector level, but infrastructure continues to outperform other areas standing at 35.6% (£669 million) above February 2020 levels. Private commercial work has suffered the most and is currently 27.2% (£676 million) below February 2020, in April. 

The fall in private housing repair and maintenance work, and private commercial new work represented a combined decrease of £215m for April. The decrease in private housing repair and maintenance comes after a strong 5.8% monthly increase in March 2022 due to the storm damage. Similarly, the fall in private commercial new work in April 2022 is partly a by-product of the strong growth (4.0%) seen in March 2022. 

Anecdotal evidence from the survey highlighted that the industry continues to deal with problems in the supply chain. A shortage in building materials combined with the rising cost of products such as concrete, timber and fuel are an ongoing problem. 

Mavromatis continues, “With no end to the current economic instability in sight, future growth depends on all parties working collaboratively. The industry has responded resiliently to the unpredictability of the last few years and understands how close working relationships with suppliers, sub-contractors, and customers helps to protect projects against future risk.“ 

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Categories: Construction,