UK construction output decreased 1.7% in January

Monthly construction output is estimated to have decreased 1.7% in volume terms in January 2023, according to recently released ONS data. This is the weakest monthly growth since June 2022 (negative 2.0%) and the lowest monthly value in level terms (£14,841m) since February 2022 (£14,719m).

Anecdotal evidence reportedly continued a narrative around economic uncertainty, leading to delays, cancellations, and less work being requested by customers; this has particularly affected the ongoing slowdown of work in the housing sector.

The decrease in monthly construction output came from a decrease in new work, falling by 4%, and was partially offset by a 2% increase in repair and maintenance.

Further anecdotal evidence highlighted the mixed effects of heavy rainfall in the first two weeks of the month, with outdoor work being affected negatively, while repair and maintenance work saw an increase.

Five out of the nine sectors saw a fall in January 2023, with the main contributors to the monthly decrease seen in infrastructure new work and private new housing, which decreased 6.5% and 3.0% respectively.

Alongside the monthly decrease, construction output saw a decrease of 0.7% in the three months to January 2023. This follows four periods of consecutive growth, owing solely to a 1.2% fall in new work, as repair and maintenance saw an increase of 0.3%.