Construction output fell for the third consecutive month in May, new figures have revealed.
Data from the Office for National Statistics (ONS) shows that overall monthly output fell by 0.2%.
Activity in May fell due to a decline in new work, which fell 0.4%. Private new housing construction and non-housing repair and maintenance had the steepest declines, down 1.7% and 2.5%, respectively.
In a statement, the ONS described anecdotal evidence that the slowdown in private housing continued due to customers’ economic worries, although some firms are now starting to report a slowdown in inflation.
Overall output for the month was £15.36bn.
Beard Construction finance director Fraser Johns said: “While some sectors are feeling the pressure, particularly private housing, and uncertainty in the wider economy may be preventing some clients from taking up new work, certainly this is not the whole picture of the industry.
“It’s certainly not normal business conditions, but it’s showing less volatility than the overall industry picture may represent. Slowly and surely, the hope is that we’ll return to more stable conditions.”
Overall, in the three months to May 2023, there was a 0.2% increase in output. compared to the previous three-month period, said the ONS. This was the weakest growth since the three months to August 2022, which fell 0.1 percent.
The 0.2% increase comes solely from a 2.5% increase in repair and maintenance.
Clive Docwra, managing director of consultancy McBains, said: “Private construction in particular is still in a state of unwinding and low activity is having a big impact on overall confidence in the construction sector.
“The fall in output in May should be kept in perspective as estimates show growth is picking up over the medium term, but given that this is the weakest growth since August last year, the industry is still a long way from recovery.”
