Construction output plummets by record-breaking 40%, ONS says

Construction output fell off a cliff in April, with the covid-19 lockdown causing activity to experience its biggest monthly drop on record with a fall of 40.1%.

The Office for National Statistics (ONS) said the overall UK economy slumped by 20.4% in April. The drop in construction GDP follows the 5.8% decline in March and in the quarter ended April, GDP has slumped 10.4%.

ONS figures said the industry saw a 41.2% fall in new work while repair and maintenance work tumbled 38.1%.

The falls were the largest on record since monthly records began in 1997.

The figures showed month-on-month falls in all new work sectors with private new housing and private commercial slumping by 59.2% and 39.7% respectively.

Clive Docwra, managing director of consultant McBains, said the numbers were further confirmation that the construction sector had a tough task ahead to recover from the coronavirus pandemic.

He added: “Hopefully today’s figures will represent the nadir given they cover the full month of lockdown but while many large construction firms are now resuming work, many will still be weakened by reduced order pipelines over the next few months.”

The decrease in repair and maintenance was also driven by record month-on-month falls in all sectors with the largest contributor being private housing repair and maintenance which declined by 54.3%.

Construction output also fell by a record 18.2% in the three months to April, compared with the previous three-month period. This was driven by a 19.4% fall in new work and a 15.8% fall in repair and maintenance.

The ONS also revealed that for the first time ever data was collected by online questionnaire than by paper questionnaire.