Official figures show drop in construction output

Latest News Fri, Jun 11, 2021 2:23 PM

Construction output fell 2.0% in April 2021, according to the latest ONS figures, following a particularly strong increase in March (5.8%).

Output now stands slightly above its pre-pandemic February 2020 level; new work continues to be subdued but the level of repair and maintenance is stronger.

Monthly construction fell by 2.0% in April 2021 because of declines in both new work (2.9%) and repair and maintenance (0.6%).

The level of construction output in April 2021 remains 0.3% above the February 2020 pre-pandemic level despite the monthly fall; while new work was 3.4% below the February 2020 level, repair and maintenance work remains 7.1% above the February 2020 level. In contrast to the monthly fall, construction output grew by 5.1% in the three months to April 2021 compared with the previous three-month period, because of a 5.2% increase in new work and 4.9% increase in repair and maintenance.

The increase in new work (5.2%) in the three months to April 2021 was because of growth in all new work sectors apart from private industrial, which fell by 3.6%; the largest contributor to this growth was private commercial new work, which grew by 7.4%. The increase in repair and maintenance (4.9%) in the three months to April 2021 was because of growth in non-housing and private housing repair and maintenance, which grew by 6.2% and 6.6% respectively.

Work for builders in the repair, maintenance and improvement sector remains healthy with a 5% increase in the three months to April 2021, but the national shortage of construction materials risks undermining builders’ ability to build, says the Federation of Master Builders.

Brian Berry, Chief Executive of the FMB, said: “That construction output in April was 0.3% above its pre-pandemic levels points to encouraging signs for the industry’s recovery. However, it’s clear that the shortage of construction materials, and rising prices, are impacting small builders most severely and threatens many businesses’ survival as we emerge from lockdown.

“The latest FMB State of Trade data that shows 93% of builders reported material price increases in Q1 of this year. Against the backdrop of high levels of inquiries for building work, it’s imperative that smaller businesses have the same access to materials as the larger firms during these difficult times.”

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