Construction output fell in July, according to official figures

A recent burst in construction output growth may have petered out in July with the amount of work falling by 0.4%, according to the latest official figures.

Output had grown by 1.7% in May and 0.5% in June but the trend was halted by downturns in repair and maintenance work and new work, which fell by 0.7% and 0.2% respectively across all construction sectors.

Monthly output fell in five out of the nine sectors in July, with the main contributors to the monthly decrease coming from private commercial new work and private housing repair and maintenance, which fell by 2.4% and 1.7%, respectively.

Output is still estimated to have grown overall by 1.2% in the three months to July due to an increase of 1.2% in new work and 0.8% for repair and maintenance across the period.

May and June’s above average output figures came after a 1.1% fall in April, which itself came after a 0.9% fall in the first quarter of the year which was blamed partly on wet weather.

Despite the warmer weather, construction remained sluggish, with rising costs for materials and labour, compounded by the naturally slower summer holiday period.

Terry Woodley, managing director of development finance at real estate bank Shawbrook, said the figures showed construction remained sluggish despite the summer’s warmer weather.

He added: “However, there are signs of recovery in certain areas, particularly in new work and infrastructure, which helped mitigate a more significant drop in overall activity.”

The data contrasts with the PMI report for July, which put output for the month at an index figure of 55.3, a two year high. Any score above the 50 no change mark indicates growth.

The report found growth continuing into August with an index of 53.8, driven by strong growth in commercial activity and civil engineering.