Construction output fell 0.5 percent in August as the amount of new construction in the sector declined.
Figures from the Office for National Statistics (ONS) show that new build work across the UK fell by 1.5% in the month, while repair and maintenance work grew by 1.0% .
The drop follows a similar decline in output the previous month, when it fell 0.4%, according to revised figures. The ONS had previously said yes a decrease of 0.5%..
However, longer-term trends suggest a more positive picture, with output growing by 0.9 percent in the three months to August, on the back of growth of 2.4 percent in June.
And August production represents growth of 2.3 percent compared to the same month in 2022.
Five of the nine construction sectors included in the analysis experienced a fall in output in August 2023. The ONS said the “main contributors” to the decline were private commercial work and housing private private, where production fell by 4.1 and 1.4 percent, respectively.
Data from the latest S&P Global/CIPS UK Purchasing Managers’ Index (PMI) atoo showed a recent decline in commercial work and home construction.
The ONS figures represent monthly estimates of the output at the expense of building and civil engineering works carried out in the corresponding period.
Kelly Boorman, national head of construction at RSM UK, said: “The latest decline in construction output this month is no surprise and reflects the ongoing slowdown in the residential market as well as market sentiment.
“The data finally shows that the previously strong job backlog is drying up post-Covid, and the industry is uncertain about its future after dealing with significant backlogs of work.
“The prolonged weakening of the residential market is likely to continue, with interest rates and inflation causing market uncertainty for both contractors and the consumer.”
