Concerning dips in housing and repair, maintenance and improvement (RMI) output in November prompted stagnant overall output for the construction industry, according to this month’s ONS stats.
This is a worrying sign not just for the nation’s small, local builders, says the Federation of Master Builders (FMB).
Brian Berry, Chief Executive of the FMB, said: “Private house building, and repair and maintenance work are the backbone of local builders’ businesses, so today’s falls in output signal a worrying winter for the sector.
“Likely prompted by consumers tightening their belts in the face of cost-of-living pressures, the falls in the ONS data reflect the FMB’s latest State of Trade survey which recorded declining enquiries for the first time in a decade.
“We know that a lack of viable land, a complicated planning system and a shortage of skilled workers are hitting SME house builders hard.”
Monthly construction output is estimated to have flat growth (0.0%) in volume terms in November 2022; this follows a downwardly revised increase of 0.4% in October 2022 (revised down from growth of 0.8% in our previous publication).
The flat growth in monthly construction output in November 2022 came from a decrease in new work (0.4% fall), offset by an increase in repair and maintenance (0.6%) on the month.
At the sector level, the main positive contributors to the flat growth were seen in infrastructure new work and non-housing repair and maintenance, which increased 4.2% and 2.4%, respectively; the main negative contributors were seen in private new housing and private housing repair and maintenance, falling 4.8% and 1.7%, respectively.
The level of construction output volume in November 2022 was 3.1% (£452 million) above the February 2020 pre-coronavirus (COVID-19) pandemic level; new work was 3.4% (£327 million) below its February 2020 level, while repair and maintenance work was 15.5% (£778 million) above the February 2020 level.
Construction output saw an increase of 0.3% in the three months to November 2022; the increase came solely from growth in new work (1.3%) as repair and maintenance saw a decrease (1.2% fall).
Revisions in this release are seen back to January 2021 and are consistent with the Gross domestic product (GDP) quarterly national accounts, UK: July to September 2022 bulletin, published on 22 December 2022).
