Construction output saw no growth in November 2022

The Office of National Statistics (ONS) has released figures showing that monthly construction output is estimated to have had flat growth (0.0%) in volume terms in November 2022; following an increase of 0.4% in October 2022.

The flat growth in monthly construction output in November 2022 reportedly came from a decrease in new work, offset by an increase in repair and maintenance on the month.

At the sector level, the main positive contributors to the flat growth were seen in infrastructure new work and non-housing repair and maintenance, which increased 4.2% and 2.4%, respectively. The main negative contributors were seen in private new housing and private housing repair and maintenance, which fell 4.8% and 1.7%, respectively.

The level of construction output volume in November 2022 was 3.1% (£452m) above the February 2020 pre-pandemic level; new work was 3.4% below its 2020 level, while repair and maintenance work was 15.5% above the 2020 level.

Construction output saw an increase of 0.3% in the three months to November 2022; the increase came solely from growth in new work (1.3%) as repair and maintenance saw a decrease (1.2% fall).

Commenting on the findings, the ONS said: “Anecdotal evidence received from returns for the Monthly Business Survey for Construction and allied trades (MBS) suggested that the narrative around increased prices for certain construction products is less notable this month, with fewer businesses reporting struggles in relation to costly materials. However, more businesses are starting to further reference economic worries leading to customers delaying or cancelling work than in previous months.

“To a lesser extent, additional comments mentioned heavy rainfall throughout November 2022. The Met Office confirmed in their Monthly climate summary (PDF, 363KB) that rainfall was above average and businesses cited that for the construction industry, the rain caused difficult working conditions. However, for some businesses the rainfall generated more work relating to repairs.”
www.ons.gov.uk