In response to the latest ONS data on construction output and new orders, Dr David Crosthwaite, chief economist at BCIS, comments:
“It’s good news that construction output grew by 0.5% in the last quarter of 2024, outperforming the wider economy, which is estimated to have grown by just 0.1% in the same period.
“Construction output growth was slightly better than expected given that the Christmas shutdown was included in the figures and the December numbers fell on a monthly basis. However, on an annual basis, construction output grew by just 0.4% overall through 2024 which is disappointing.
“Quarterly growth came mainly from the new work sectors, with repair and maintenance output falling back during the quarter. Private housing, public other and private industrial work were the primary drivers of growth during the quarter.
“Looking forward, new orders figures for the last quarter of 2024 were down again – by 2.4% compared with 3Q 2024, and by 0.1% compared with 4Q 2023 – although these falls are not as steep as we saw in the previous quarter. We have to hope that the Bank of England reducing the base rate and the government’s growth plans have a positive effect on investor confidence and demand levels in the sector going forward.”