The UK’s construction sector experienced moderate growth in the third quarter of 2024, according to the latest figures from the Office for National Statistics (ONS).
Output increased by 0.8% in the three months leading to September, compared to the preceding quarter. This modest growth reflected a mixed performance across various segments of the industry.
New work output rose by 2.0%, with infrastructure projects leading the way at 2.8%. However, the repair and maintenance segment contracted by 0.6%, driven by a significant 5.8% decline in private housing repairs and maintenance.
In September alone, construction output edged up by 0.1%. Repair and maintenance activities contributed to this increase, rising by 0.4%. On the other hand, new work output saw a slight decrease of 0.2%. Of the nine construction sectors, four reported monthly growth, with private housing repair and maintenance recording the largest increase at 1.3%.
The construction sector’s performance has been a contributing factor to the broader economy, with real GDP growing by 0.1% in the three months to September 2024. Key drivers of this economic growth included retail trade and new construction projects.
Brian Berry, Chief Executive of the Federation of Master Builders, noted:
“The 0.8% growth in the construction sector for Q3 2024 is a positive indication of recovery after several challenging years. The 2% increase in new work reflects growing market confidence.
“However, the 0.6% drop in repair and maintenance highlights ongoing challenges, as cautious consumer spending may be restraining activity. The sharp decline in housing orders during the quarter remains concerning despite government efforts to build 1.5 million homes.
“A long-term strategy to address the skills shortage and diversify the housing market, particularly by supporting small and medium-sized builders, is essential for meeting the UK’s ambitious housing targets.”
The mixed results underscore the need for sustained efforts to stabilize and expand the construction sector amid broader economic uncertainties.
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By Proptechbuzz
By Ravi Kumar
