Construction output grows four times faster than UK economy in November

Construction output in November grew 0.4% on the previous month, according to the latest figures from the ONS.

Construction’s rate of growth in November was four times faster than the UK economy as a whole.

The increase in output, which was experienced in both new work (0.3%) and maintenance (0.5%), came as growth for October was revised upwards to 0.3%.

Five out of nine sectors in the industry grew in November, with the main contributors being private commercial new work (3.1%) and non-housing repair and maintenance (1.1%).

In the three months to November, output is estimated to have increased 0.2%, based solely on an increase in new work (0.4%). Repair and maintenance work was stagnant over the period.

“Coming hot on the heels of a reported drop in inflation, the news this morning that the UK’s construction output has increased is another positive bellwether for the UK economy,” said Richard Cook, senior economics director at Pegasus Group.

He said the construction industry “should reap the benefits” of an increase in housebuilding on the back of the new National Planning Policy Framework but warned skills shortages continued to “hamstring” the sector.