
Total construction output edged up by 0.1% between July and September compared with the previous three months, although private housing fell, according to official figures
Data from the Office for National Statistics show new work declined by 0.2% while repair and maintenance grew by 0.6%.
Four out of nine construction sectors grew in the third quarter. The main positive contribution came from private housing repair and maintenance, which grew by 2.9%.
The main negative contributor was private housing, which declined by 1.9%.
Monthly construction output is estimated to have grown by 0.2% in September. This follows a downwardly revised decrease of 0.5% in August and an upwardly revised increase of 0.2% in July.
The increase in September came solely from an increase in new work (0.7%), as repair and maintenance decreased by 0.5% on the month.
Total construction orders grew by 9.8% (£1,078m) in Q3 compared with Q2. The quarterly increase came mainly from private commercial new work and private industrial new work.
The annual rate of construction output price growth was 2.7% in the 12 months to September.
A degree of comfort ahead of difficult winter
Clive Docwra, managing director of property and construction consultancy McBains, said: “Todays’ figures will at least provide some degree of comfort ahead of what many expect to be a difficult winter for the construction industry.
“However, it’s still a mixed bag – while we welcome new work increasing by 0.7% in September and the private commercial sector witnessing growth over the month, performance over the last quarter as a whole remains sluggish, with new orders falling by 0.2% and private housing by a worrying 1.9%. It’s clear that underlying concerns from investors over the economy are still biting hard.
“The immediate road ahead remains challenging, and while many are expecting a lacklustre Budget later this month, the hope is that the Chancellor will make further commitments in terms of infrastructure investment and moves toward a more settled fiscal environment. With housebuilding in need of a boost, reforms such as abolishing stamp duty would also provide a shot in the arm for the sector.”
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